Banks, nominated agencies to get 3% IGST on gold and silver imports

The government has decided to impose a 3% Integrated Goods and Services Tax (IGST) on gold and silver imports by banks and nominated agencies. The decision aims to ensure uniform tax treatment across all routes of precious metal imports, including the bullion channel.

Previously, different tax rates applied depending on the import route, creating disparities in the tax burden on gold and silver imports. By standardizing the IGST at 3%, the government seeks to eliminate these inconsistencies and create a level playing field for all importers.

This move is expected to streamline the import process and bring clarity to tax obligations for financial institutions and agencies involved in precious metal trade. The uniform tax rate aligns with the broader objective of tax parity in the gold and silver import sector across various channels.