Gold Prices Rising? 3% Import Tax Hits Your Jewellery Bill

The government removed a special tax exemption that let banks import gold, silver, and platinum without paying 3% IGST upfront. This could make imported precious metals costlier, nudging up jewellery and gold coin prices for everyday buyers.

Here's what happened: The government withdrew a special IGST exemption that previously allowed banks to import gold, silver, and platinum without paying 3% integrated GST at the point of import.. The move is intended to create tax parity — other importers always paid the 3% IGST upfront, while banks had a structural cost advantage that is now being removed.. Banks are a major supply channel for precious metals in India, distributing bullion to jewellers, refiners, and retailers, so their higher input costs are likely to flow through to end consumers..

What you should do: If you're planning a big gold or jewellery purchase — wedding, anniversary, or investment — consider buying before retailers reprice stock sourced at the new, higher import cost.. Compare sovereign gold bonds (SGBs) or gold ETFs as alternatives to physical gold — these are unaffected by import-stage GST shifts and carry no making-charges or storage risk.. Check whether your jeweller is quoting hallmarked BIS-certified gold — purity assurance matters more when you're paying a higher all-in price per gram..

Sovereign Gold Bonds earn 2.5% annual interest on top of any price appreciation — physical gold earns nothing and now costs more at import. For investment buyers, the SGB math just got stronger.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.