No more tax relief for importing gold, silver and platinum: What does it mean? Will buyers pay more?

The government has withdrawn the upfront IGST exemption for banks and nominated agencies importing precious metals. Since 1 April 2026, these imports have been subject to a 3% customs levy.

The government has ended tax relief for banks importing gold, silver and platinum. Banks must now pay 3% Integrated Goods and Services Tax, or IGST, upfront.

According to Revenue Secretary Arvind Shrivastava, banks have paid this tax since 1 April 2026. The government informed the GST Council about the change on 8 October.

"This is done to ensure parity of taxes imposed on imports of gold and other metals through different routes," Reuters quoted Shrivastava as saying.

What has changed?

The exemption covered gold imports in 2017. It was later extended to other precious metals. Under this relief, banks could import these metals without paying IGST upfront. The exemption for banks and nominated agencies has now expired.

Bank imports, therefore, attract the 3% levy when shipments clear customs. This changes when importers must arrange money for tax payments.

The government wants different import routes to be subject to similar tax rules. Earlier, bank channels enjoyed an upfront tax advantage over alternative routes.

Ending the waiver puts bank imports alongside shipments through organised trading platforms. One such platform is the India International Bullion Exchange in Gujarat’s GIFT City.

The aim is to prevent tax rules from favouring a particular import route. Importers can then choose routes without that earlier tax advantage.