Banks to pay 3 % IGST for Gold Imports

New Delhi Aug 21: An issue was clarified recently.
The government has said that "banks importing gold and precious metals will have to pay 3% tax under the GST which can be claimed as input tax credit".

The Central Board of Excise and Customs had Clarified issues on GST on gems and jewelry through Frequently Asked Questions (FAQs) and has said that "banks did not pay any VAT on the import of precious metals previously, They only paid customs duty."

CBEC has also clarified that "banks would be liable to pay IGST on such imports and not any overseas supplier in which ownership is vested during movement of gold or silver".

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

Currently, the following taxes are levied on gold

* 10% basic customs duty.
* 12.5% countervailing duty (CVD) was levied and it has been subsumed under GST.

The CBEC also clarified on levy of GST where the total value of a gold ornament is Rs30,000, including Rs2,000 as making charge saying, "GST is payable at the rate of 3% of the total transaction value of jewelry, whether the making charge is shown separately or not".