Notification No. 17/2019 - Integrated Tax (Rate) Explained

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Notification No. 17/2019 - Integrated Tax (Rate): Seeks to amend notification No 27/2018- Integrated Tax (Rate) dated 31.12.2018 so as to exempt IGST on supplies of silver and platinum by nominated agencies to registered persons.

GST: [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

G.S.R.- - - (E).- In exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.27/2018- Integrated Tax (Rate), dated the 31^st December, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 1266 (E), dated the 31^st December, 2018, namely:-

In the said notification, -

for the word “gold”, wherever it occurs, the words, “gold, silver or platinum”, shall be substituted;

in the opening paragraph, for the word and figures, “heading 7108”, the word and figures, “Chapter 71”, shall be substituted;

in the Explanation, for clause (d), the following clause shall be substituted, namely: —. “(d) “Chapter” means heading as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975).”.

2. This notification shall come into force on the 1^st day of October, 2019.

(Gunjan Kumar Verma)
Under Secretary to the
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 17/2019 - Integrated Tax (Rate)

Q1: What is Notification No. 17/2019 – Integrated Tax (Rate)?

Answer:
It amends Notification No. 27/2018 to exempt IGST on the supply of silver and platinum, in addition to gold, when supplied by nominated agencies to GST-registered persons.

Q2: From which date is this IGST exemption applicable?

Answer:
The exemption is applicable from 1st October 2019.

Q3: Who are “nominated agencies” under GST?

Answer:
Nominated agencies are government-approved entities such as banks and PSU agencies authorized to import and supply precious metals.

Q4: Does this exemption apply to all buyers?

Answer:
❌ No. The exemption applies only when supplies are made to GST-registered persons.

Q5: What happens if silver is sold to an unregistered buyer?

Answer:
IGST will be applicable. Exemption is strictly for registered recipients.

Q6: Which metals are covered under this notification?

Answer:
Gold
Silver
Platinum
All metals falling under Chapter 71 of the Customs Tariff Act, 1975 are covered.

Q7: Why was Chapter 71 mentioned instead of a specific heading?

Answer:
Earlier reference was only Heading 7108 (gold). The amendment expands coverage to entire Chapter 71, ensuring uniformity for all precious metals.

Q8: How does this help jewellers and bullion traders?

Answer:
✔ Reduces IGST payment at import stage
✔ Improves cash flow
✔ Eliminates refund dependency
✔ Simplifies GST compliance
Ensure accurate reporting through Finodha GST Return Filing:
👉 https://finodha.in/gst-return-filing/

Q9: Is ITC available on such exempt supplies?

Answer:
Since the supply is exempt, ITC related to such inward supplies cannot be claimed, as per Section 17(2) of CGST Act.

Q10: Does this notification impact domestic silver or platinum sales?

Answer:
No. It applies only to supplies made by nominated agencies, usually linked to imports.

Q11: Is separate documentation required to claim exemption?

Answer:
Yes. Proper invoices, GST registration proof, and contract documents must be maintained.
Need help with GST documentation?
👉 Finodha GST Compliance Services
https://finodha.in/gst-compliance/

Q12: Can MSME jewellers benefit from this exemption?

Answer:
Yes, if they are GST-registered. MSMEs should also ensure proper Udyam registration:
👉 https://finodha.in/online-udyam-udyog-aadhar-msme-registration/

Q13: What section of IGST Act empowers this exemption?

Answer:
Issued under Section 6(1) of the IGST Act, 2017, based on GST Council recommendations.

Q14: Does this exemption apply automatically?

Answer:
Yes, provided all conditions are met. Incorrect invoicing can lead to denial during audits.

Q15: How can Finodha help businesses affected by this notification?

Answer:
Finodha assists with:
GST registration & compliance
Return filing & reconciliation
Advisory on exemptions & ITC
Business structuring
👉 Consult a Finodha GST Expert today!
https://finodha.in/gst-compliance/