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Banks to pay 3% IGST on imports of gold, precious metals: CBEC

It also said banks would be liable to pay IGST on such imports and not any overseas supplier

Press Trust of India  |  New Delhi 

Banks to pay 3% IGST on imports of gold, precious metals: CBEC

Banks importing gold and will have to pay 3 per cent tax under goods and services tax (GST), which can be claimed as input tax credit, the government has said.

Clarifying issues on on and jewellery through frequently asked questions (FAQs), the (CBEC) said banks did not pay any (value-added tax) on an import of previously. They only paid customs duty.


However, under GST, "3 per cent Integrated-is payable on all of in addition to the basic customs duty. (Integrated GST) paid can be taken as input tax credit by the banks."

It also said banks would be liable to pay on such and not any overseas supplier in which ownership is vested during movement of gold or silver.

"Ownership is not material for determining whether an import has taken place. Banks, being registered entities, would be liable to pay on such but not the overseas entities since they are not effecting the import," the FAQ said.

Import of gold attracts a 10 per cent basic customs duty. On top of that, a 12.5 per cent countervailing duty (CVD) was levied prior to

Since subsumed CVD, hence the rate on gold at 3 per cent has to be paid at the time of in the form of with effect from July 1.

The also clarified on levy of where the total value of a gold ornament is Rs 30,000, including Rs 2,000 as making charge saying, "is payable at the rate of 3 per cent of the total transaction value of jewellery, whether the making charge is shown separately or not".

First Published: Mon, August 21 2017. 17:26 IST
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