Indian banks have stopped gold and silver imports since April 1, citing a pending annual government notification that is supposed to clarify IGST treatment for bullion trade. The issue is expected to carry into FY27 as the renewed Finmin notification hangs fire, tightening supply and adding uncertainty for jewellers and traders relying on imports.
India’s gold imports are expected to drop to about 15 metric tons in April, nearly a 30-year low, as banks halted shipments. The stoppage follows a 3% IGST demand raised by customs, with delays also reported in formal authorisation for bullion imports. With banks handling most incoming consignments, the tax dispute is directly hitting supply flows.
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