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Banks need to pay 3% IGST on gold, precious metals imports: CBEC
Aug-22-2017

Clarifying the Goods and Services tax (GST) related issues of gems and jewellery sector, Central Board of Excise and Customs (CBEC) has said that the banks will have to pay additional 3 per cent Integrated GST (IGST) on imports of gold and precious metals along with the basic customs duty, which can be claimed as input tax credit. Previously banks were not paying any VAT (value-added tax) on an import of precious metals.

The apex body also said that the overseas entities would not be liable to pay IGST on such imports since they are not effecting the import. CBEC also clarified that the rate of 3 per cent is payable on the total transaction value of jewellery, whether the making charge is shown separately or not. 

Currently, basic customs duty on gold import is 10 percent. The government has subsumed countervailing duty (CVD) of 12.5 per cent on it under new tax regime, hence it has imposed 3 per cent of GST rate on gold imports in the form of IGST with effect from July 1.

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