Indian banks resume gold and silver imports after paying IGST
After more than a month of waiting, Indian banks have started importing gold and silver again.
The pause happened because customs authorities began demanding the 3% IGST on April 1 after the exemption was no longer in place.
Instead of holding out for an exemption, banks chose to pay the integrated goods and services tax (IGST) so shipments could finally move.
Banks cleared 9t gold 34t silver
In May, banks cleared about nine metric tons of gold and 34 metric tons of silver, helping ease market shortages.
Still, demand isn't exactly booming; dealers are offering discounts up to $17 per ounce (including all taxes), according to Chirag Thakkar from Amrapali Group Gujarat.
Imports had dropped to a near 30-year low in April during the halt, but now with imports back on track, there's talk this could widen India's trade deficit and put more pressure on the already struggling rupee.