The GST Fitment Committee has recommended abolition of IGST exemption given to banks and nominated agencies on import of gold, silver and platinum. The move will levy 3 percent IGST on such imports. This exemption for gold was introduced in 2017 following the GST Council’s recommendation to facilitate trade for banks and designated agencies importing the precious metal. Later it was extended to import of silver and platinum.

At present, import of gold is restricted and allowed only through specialized channels. These include banks and nominated agencies designated by the Directorate General of Foreign Trade (DGFT), jewelers qualified by the India International Bullion Exchange (IIBX) and India-UAE tariff rate quota holders qualified by the IIBX. This recommendation of the Fitment Committee is due to the discrepancy between the GST exemption notification and the latest DGFT list of eligible banks.

Why did the discount end?

According to a Business Today report, the list of banks eligible to import gold and silver was valid till March 31, 2026. The DGFT issued a public notice on April 17, 2026, giving information about the list of eligible banks for the period from April 1, 2026 to March 31, 2029. However, DGFT regarding DGFT was not updated as per new information. List due to which, according to the Fitment Committee document, banks are not getting IGST exemption from April 1, 2026. Exemption continues for agencies nominated under List 15, as that list need not be renewed from time to time by the DGFT.

Gold and silver do not necessarily become expensive

The committee has now recommended abolition of IGST exemption on import of gold, silver and platinum by banks and nominated agencies falling under Lists 13, 14 and 15. After the exemption ends, 3% IGST will be applicable on such imports. However, this move does not mean that the final tax cost for eligible importers will increase by 3%. The Fitment Committee has said that banks and nominated agencies will be entitled to claim input tax credit on IGST paid and avail that credit. The committee has also proposed necessary changes in the existing GST notifications regarding supply of gold, silver and platinum by nominated agencies under the export-linked supply scheme. It has recommended to define nominated agencies on the basis of Annexure 4B of DGFT’s ‘Handbook of Procedure’ (as amended from time to time).