The India Bullion Bankers Association (IBBA) has appealed to the government to exempt gold and studded gold jewellery and articles' exporters from paying 3 per cent IGST on bullion at the time of imports. The move will help boost export growth by unblocking funds, which is a cost for the exporter.
IBBA comprises banks with bullion desks and includes the likes of Scotiabank, Kotak BankBSE -0.33 %, SBI, etc. IBBA recently wrote to the Sectoral Working Group, head for Banking, Financial & Insurance services under GST Council, DGFT and commerce ministry recommending removal of IGST at time of bullion import for exports of finish products.“To promote export growth, it will be pertinent to ease the process of exports as well as making it financially more competitive,“ said Shekhar Bhandari, business head (precious metals), Kotak Bank.
Source: economictimes.indiatimes.com