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Gold imports hit by GST uncertainty, supply concerns build: IBJASurendra Mehta, Secretary at India Bullion & Jewellers Association, flagged restrictions on gold ore and jewellery imports as well, warning that supply could tighten in the domestic market if clarity is not provided soon, especially with demand expected to rise.By Manisha Gupta  April 17, 2026, 3:39:14 PM IST (Published)2 Min ReadGold imports into India have slowed sharply due to regulatory and system-related issues, raising concerns about supply ahead of peak demand, according to Surendra Mehta of the India Bullion & Jewellers Association.

Mehta said banks have been unable to import gold since April due to a lack of clarity on goods and services tax (GST) rules. “Virtually the imports have stopped because of this,” he said, pointing to a pending notification from the Directorate General of Foreign Trade (DGFT).

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The issue stems from a system showing a 3% GST payment requirement on imports, despite exemptions being in place. Until clarity is provided, banks are holding back imports.

At the same time, gold ore imports by refiners have also been affected. Licences are not being renewed or issued, limiting imports to older approvals. Mehta said this could impact the refining industry and jobs.

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He added that restrictions have widened beyond gold to jewellery imports as well. Jewellery imports moved to the restricted category, he noted.

The combined impact could tighten supply in the domestic market. “Restricting imports will definitely create a shortage in the Indian market,” Mehta said, warning that shortages may emerge after the festive buying period.

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