Government exempts IGST on gold imports

However, gold refineries, which import more gold or unrefined gold, will have to pay 3% IGST

The government has issued a notification allowing 36 banks and five canalising agencies, including MMTC and MSTC, to import gold without paying a 3 per cent integrated goods and services tax (IGST). It’s a big relief for financial institutions importing gold, as the 3 per cent tax was an additional burden on them. 

Till now, importers’ working capital used to get blocked until they got the refund on GST paid. However, the new notification removes that hurdle and smoothens the process of import. Analysts say gold imports on a consignment basis, which had almost stopped after the implementation of the GST,