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:

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Frequently Asked Questions

The exemption of GST on the export of Gold, Silver, and Platinum is announced to promote exports from India. By removing the tax burden, it aims to make Indian exports more competitive in international markets.

The revised GST rate, exempting exports of Gold, Silver, and Platinum, came into effect from October 1, 2019.

Apart from precious metal exports, the GST exemption is also applicable for services provided by an intermediary agency to a supplier or recipient of goods if both parties are located outside the taxable territory. Additionally, the mandatory declaration of the service recipient's location for companies in Research and Development (R&D) is exempted.

Yes, the import of Silver or Platinum by specified nominated agencies is exempted from GST/IGST (Integrated Goods and Services Tax).

Yes, the supply of Silver or Platinum by the specified nominated agencies to exporters for Jewellery exports is exempted from GST.

Diamond India Limited (DIL) has been included in the list of nominated agencies eligible for IGST exemption on imports of Gold, Silver, or Platinum, enabling them to supply these metals at Nil GST to Jewellery exporters.

The GST rate on cut and polished semi-precious stones has been reduced to 0.25% from the earlier 3%.

The reduction in the GST rate for cut and polished semi-precious stones is aimed at easing the burden on exporters by providing them with enough working capital and enabling them to compete effectively in international markets.

The revised GST rates, including exemptions on precious metal exports and the reduced rate for cut and polished semi-precious stones, are applicable from October 1, 2019, onwards.

The official notification from the Ministry of Finance regarding the GST exemption on Gold, Silver, and Platinum exports, and other rate changes, is provided in the article for reference.