The Centre is expected to issue a rectification order within 48 to 72 hours to reinstate the gold import tax exemption for banks. Industry body IBJA says the benefit was accidentally withdrawn through a notification, triggering an IGST-related disruption. Shipments have resumed as the government works to correct the error and restore the earlier relief.
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.
Your news, in seconds
Get the Beige app — every story in 60 words, updated hourly. Free on iOS & Android.
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.
Swipe through stories, personalise your feed, and save articles for later — all on the app.
