Large amounts of working capital were earlier being blocked on account of exporters having to pay IGST upfront and then apply for refunds.
The GST Council has recommended that gold supplied by Nominated Agencies to exporters of articles of gold jewellery should be exempted from GST, according to a release issued by the Ministry of Finance, Government of India on December 22, 2018. The decision was taken at the 31st meeting of the body which took place at New Delhi on the same day.
The meeting also took other decisions relating to changes in GST rates, and made some clarifications (on Goods) at its meeting. The government stated that “the same would be given effect to through Gazette notifications/ circulars which shall have force of law”.
Large amounts of working capital were earlier being blocked on account of exporters having to pay IGST upfront and then apply for refunds. Hence, GJEPC had suggested that exempting gold purchased from Nominated Agencies for exports of gold jewellery from GST.