Indian banks have resumed imports of gold and silver after a pause that lasted more than a month, agreeing to pay a 3% customs levy — the integrated goods and services tax (IGST) — that had prompted the stoppage, trade and government sources told Reuters. (sg.finance.yahoo.com)
Bank and customs sources said shipments have been cleared from ports in recent days after banks agreed to the levy, with roughly 9 metric tonnes of gold and about 34 metric tonnes of silver moved so far in May, improving supplies to domestic markets. (moneycontrol.com)
The halt earlier this month pushed India’s April gold imports to an estimated near 30‑year low of about 15 tonnes, as banks held back sending fresh purchase orders when customs began demanding IGST and annual import authorisations were delayed. That drop and the subsequent restart are expected to affect India’s trade balance and add near‑term pressure on the rupee. (business-standard.com)
The IGST charge revived a long‑running administrative and policy debate. Historically some bank imports had been exempted from this 3% levy; customs’ renewed demand, combined with a delay in issuing routine bank authorisations, was seen by some market participants as a deliberate step to slow bullion inflows. Banks chose to pay the tax to free shipments and stabilise domestic inventories. (sg.finance.yahoo.com)
Separately, several news outlets reported that New Delhi had raised effective import duties on gold and silver to around 15% — a move framed as intended to curb imports and support the rupee — though details and official orders were still being circulated in the market at the time of reporting. Industry participants warned that sharply higher duties could revive smuggling incentives. (investinglive.com)
Government sources, however, told reporters there was no current plan to hike import duties on gold and silver, underscoring the mixed signals in markets and the sensitivity of policy communication while authorities weigh options to protect foreign exchange reserves. (sg.finance.yahoo.com)
For consumers and jewellers the practical result has been a patchy supply picture and volatile premiums: with bank imports restarting, physical availability should improve, but traders say demand remains weak and domestic gold was trading at discounts this week versus earlier levels. The episode highlights how tax, licensing and currency pressures can quickly ripple through India’s bullion market — the world’s second‑largest consumer of gold. (moneycontrol.com)
Original Source: https://www.reuters.com/sustainability/boards-policy-regulation/indian-banks-resume-bullion-imports-after-month-long-halt-over-3-levy-sources-2026-05-12/
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Publish Date: 2026-05-13 02:28:00
