MMTC, STC may lose gold tax edge as 3% GST weighed
The Indian government is considering bringing state-owned entities like MMTC and STC under the 3% GST framework for gold imports to ensure a level playing field. This proposal aims to harmonize tax treatment across all import channels, including bullion exchanges.
Why it matters
Changes in tax policy for precious metals can impact market liquidity, import volumes, and the operational costs of major trading entities.
Government entities such as MMTC and the State Trading Corporation of India could soon be brought within the goods and services tax (GST) framework for imports of gold and other precious metals.The proposal is aimed at ensuring that different channels used to import bullion face similar tax treatment and at reducing classification and valuation disputes that have resulted in lengthy litigation.The issue is likely to be discussed at the GST Council meeting on October 8.
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