According to Reuters, Revenue Secretary Arvind Shrivastava said the change was announced to the GST Council on 8 October, aiming to equalise taxation across import channels—
The 3% tax now applies to all banks' gold, silver and platinum purchases, effective from 1 April 2026. Banks that previously relied on the exemption had been paying the tax only since that date, which has now been normalised—
For major banks like State Bank of India, the additional cost translates to a modest uptick in their commodity‑related expenses. While the exact impact on the bank’s balance sheet depends on gold import volumes, a 3% hike is unlikely to swing headline earnings dramatically in the short term—
The policy shift could ripple through the gold market. Higher import costs may prompt a modest price lift for gold, influencing retail demand and potentially nudging bullion prices upward by a few percent in the coming months—
Looking ahead, banks are expected to adjust their import strategies and may seek efficiency gains in logistics or hedging. Investors should monitor Q2 earnings releases for any mention of commodity‑related cost adjustments and watch gold price movements for early signals of market sentiment.