Notification No. 26/2018 – Central Tax (Rate) Explained

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Notification No. 26/2018 - Central Tax (Rate): seeks to exempt central tax on supply of gold by nominated agencies to registered persons.

GST: [TO BE PUBLISHED IN THE GAZZETE 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 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council,

hereby exempts the intra-State supply of gold falling in heading 7108 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when supplied by Nominated Agency under the scheme for "Export Against Supply by Nominated Agency" as referred to in paragraph 4.41 of the Foreign Trade Policy, read with relevant provisions of Chapter 4 of Handbook of Procedures, to a registered person (herein referred to as “recipient”), from the whole of the central tax leviable thereon, under section 9 of the Central Goods and Services Tax Act, 2017, subject to following conditions, namely:-

the Nominated Agency and the recipient shall follow the conditions and observe the procedures as specified in the Foreign Trade Policy read with Handbook of Procedures;

the recipient shall export the jewellery made out of such gold within a period of 90 (ninety) days from the date of supply of gold to such recipient and shall provide copy of shipping bill or bill of export containing details of Goods and Services Tax Identification Number (GSTIN) alongwith the invoice for exports to the Nominated Agency within a period of 120 (one hundred and twenty) days from the date of supply by the Nominated Agency;

wherever such proof of export is not produced within the period mentioned in condition (ii), the Nominated Agency shall pay the amount of central tax payable on the quantity of gold not exported, along with interest from the date when the said tax on such supply was payable, but for the exemption.

Explanation. - For the purpose of this notification, -

"Foreign Trade Policy " means the Foreign Trade Policy, 2015-2020, notified by the Government of India in the Ministry of Commerce and Industry vide notification No.41/2015-2020, dated the 5^th December, 2017, published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-Section (ii) vide S.O. 3813, dated the 5^th December, 2017;

"Handbook of Procedures" means the Handbook of Procedure, notified by the Government of India in the Ministry of Commerce and Industry vide Public Notice No. 43/2015-2020, dated the 5^th December 2017, published in the Gazette of India, Extraordinary, Part-I, Section 1, vide F. No. 01/94/180/333/AM 15/PC, dated the 5^th December 2017;

"Nominated Agency" means entities mentioned in List 32 of Notification No. 50/2017-Customs, dated the 30^th June 2017 published Gazette of India, Extraordinary, Part-II, Section 3 sub-section (i),vide, number G. S. R. 785 (E), dated the 30th June, 2017;

“Heading” 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 January, 2019.

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

📚 Frequently Asked Questions (FAQs): Notification No. 26/2018 – Central Tax (Rate)

Q1: What is Notification No. 26/2018 – Central Tax (Rate)?

Answer:
It is a GST notification issued on 31 December 2018 that exempts CGST on gold supplied by nominated agencies to registered exporters under the export scheme.

Q2: From when is this notification effective?

Answer:
It is effective from 1 January 2019. 26

Q3: Under which section was this notification issued?

Answer:
It was issued under Section 11(1) of the CGST Act, 2017, which allows tax exemptions in public interest.

Q4: Who can supply gold under this exemption?

Answer:
Only Nominated Agencies listed under government notifications can supply gold under this scheme. 26

Q5: Who can receive gold under this exemption?

Answer:
Only registered persons who use the gold to manufacture jewellery for export.

Q6: What is the time limit to export jewellery?

Answer:
The jewellery must be exported within 90 days from the date of gold supply. 26

Q7: What is the deadline to submit export proof?

Answer:
Proof of export must be submitted within 120 days from the date of supply. 26

Q8: What happens if export is not completed within time?

Answer:
The nominated agency must pay:
Applicable CGST
Interest from the original due date 26

Q9: Does this exemption apply to all gold transactions?

Answer:
No.
It applies only to:
Gold supplied by nominated agencies
Under the export scheme
To registered exporters

Q10: Is GST payable if jewellery is sold in India?

Answer:
Yes.
If the jewellery is not exported and is sold domestically, GST will apply as per normal rules.

Q11: Can ITC be claimed on such gold supply?

Answer:
Since the supply itself is exempt, ITC treatment depends on the exporter’s overall tax structure and export conditions.
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