GST Council may withdraw exemption on precious metal imports by banks

The GST Council is considering withdrawing the IGST exemption on gold, silver and platinum imported by banks and nominated agencies, according to sources. The exemption, granted in 2017 when precious-metal imports were strictly controlled, could be removed as the government aims to reduce non-essential imports and manage foreign exchange outflows.

The move would increase the tax burden on precious metal imports and potentially affect pricing in the domestic market. The decision reflects the government's push to conserve foreign currency amid external account pressures.