GST Exemption on Gold, Silver and Platinum
GST Exemption on Gold, Silver and Platinum
As per the latest GST Council meeting held on 20th September 2019, the council announced exempted or reduced Goods and Services Tax in the interest of the public. Of which, the GST is exempted on the export of Gold, Silver and Platinum. This revised rate of GST is effective from 1st October 2019.
The exemption of GST was announced to promote the exports from India. Apart from the precious metals, the exemption is applicable for the services provided by an intermediary agency to a supplier of goods or recipient of goods if both the supplier and recipient are located outside the taxable territory. Also, the mandatory declaration of the location of the service recipient for the companies in Research and Development (R&D) are exempted.
Exemption from GST/IGST
- At the time of import on Silver/Platinum by specified nominated agencies
- Supply of Silver/Platinum by the specified nominated agency to exporters for exports of Jewellery
Also, the Diamond India Limited (DIL) is included in the list of nominated agencies eligible for IGST exemption on imports of Gold, Silver or Platinum which will enable to supply at Nil GST to Jewellery exporters.
The GST rate on cut and polished semi-precious stones has also been reduced to 0.25% from 3%. This is to ease the exporters to have enough working capital and enable exporters to compete in international markets.
The revised GST tax rates are applicable from 1st October 2019 onwards. The exact notification from the Ministry of Finance is produced below for quick reference:
GST Exemption on Gold