Impact of GST on Gold Rates

[Karthik Ramanathan]

1. What will be the impact on Gold rate at market after introduction of GST?

2. What will be the impact for the banking institution for already mortgaged gold loans ?

[Rajagopalan Ranganathan]

Sir,

1. As per GST RATE SCHEDULE [As per discussions in the GST Council Meeting held on 3rdJune, 2017] Gold (including gold plated with platinum) unwrought or in semi manufactured forms, or in powder form is leviable to GST @3%.

2. Instructions or procedure in this regard is awaited from the Government/GST Council.

[Karthik Ramanathan]

ok sir. thank you for the information.

AI Summary

GST on gold may raise market prices due to a specified levy; guidance for existing mortgaged gold loans is pending. Gold in unwrought, semi manufactured, or powder form, including gold plated with platinum, is subject to a GST levy; procedural instructions for implementation are awaited. No guidance has yet been issued on the treatment of existing mortgaged gold loans, leaving banks to await formal directions from government or the GST Council.