Background:
Notification No. 26/2018-Central Tax (Rate) dated 31.12.2018 (effective 01.01.2019), issued under Section 11(1) of the CGST Act, 2017 on the recommendations of the 31st GST Council, exempts the intra-State supply of gold, silver or platinum falling in Chapter 71 by a “Nominated Agency” to a registered person under the scheme for “Export Against Supply by Nominated Agency” referred to in paragraph 4.40 of the Foreign Trade Policy, 2023 read with Chapter 4 of the Handbook of Procedures (“HBP”), from the whole of the central tax. The exemption is subject to the conditions that the recipient exports the jewellery made out of such precious metal within 90 days of the supply and furnishes the shipping bill/bill of export with GSTIN details along with the export invoice to the Nominated Agency within 120 days, failing which the Nominated Agency is liable to pay the tax with interest. Parallel exemptions exist under Notification No. 27/2018-Integrated Tax (Rate) and Notification No. 26/2018-Union Territory Tax (Rate).
The expression “Nominated Agency” was defined in clause (c) of the Explanation by cross-reference to the customs exemption notification, since the same agencies were permitted to import gold and silver at concessional rates of duty. The definition originally referred to the entities mentioned in List 34 of Notification No. 50/2017-Customs dated 30.06.2017. When the customs exemption notifications were consolidated with effect from 01.11.2025 and Notification No. 50/2017-Customs was superseded by Notification No. 45/2025-Customs dated 24.10.2025, the definition was amended vide Notification No. 18/2025-Central Tax (Rate) dated 24.10.2025 to refer to the entities mentioned in Lists 13, 14 and 15 appended to Table I of Notification No. 45/2025-Customs (relating to S. No. 198 thereof).
Vide Notification No. 34/2026-Customs dated 27.10.2026 (G.S.R. 933(E)), published in the same Gazette, the Central Government has omitted S. No. 198 of Table I and Lists 13, 14 and 15 of Notification No. 45/2025-Customs with effect from 01.11.2026. With the customs lists ceasing to exist, the GST exemption would have been left without an operative definition of “Nominated Agency”. It was therefore necessary to anchor the definition to the list of nominated agencies maintained by the Directorate General of Foreign Trade (“DGFT”) itself, i.e., Appendix 4B of the HBP, which lists the banks authorised by the RBI and the other agencies nominated by the DGFT to import precious metals (Appendix 4B was last updated vide DGFT Public Notice No. 04/2026-27 dated 17.04.2026 for the period 01.04.2026 to 31.03.2029). This amendment is a consequential and machinery amendment and does not flow from a specific recommendation in Part C of the Press Release of the 57th GST Council, though it has been issued on the recommendations of the Council.
What the Notification provides:
Now, the CBIC vide Notification No. 05/2026-Central Tax (Rate) dated 27.10.2026 (G.S.R. 930(E)), issued under Section 11(1) of the CGST Act, 2017 on the recommendations of the GST Council, has amended Notification No. 26/2018-Central Tax (Rate) dated 31.12.2018 by substituting clause (c) of the Explanation as under:
“(c) “Nominated Agency” means entities mentioned in Appendix 4B of Handbook of Procedures, as amended by the Directorate General of Foreign Trade from time to time;”
| Clause (c) up to 31.10.2026 | Clause (c) w.e.f. 01.11.2026 | |
| Definition of “Nominated Agency” | Entities mentioned in Lists 13, 14 and 15 appended to Table I of Notification No. 45/2025-Customs dated 24.10.2025 (as substituted by Notification No. 18/2025-Central Tax (Rate) w.e.f. 01.11.2025) | Entities mentioned in Appendix 4B of the Handbook of Procedures, as amended by the DGFT from time to time |
All other conditions of the exemption, namely the requirement of supply under the scheme in paragraph 4.40 of the FTP, export of the jewellery within 90 days, furnishing of proof of export within 120 days and the liability of the Nominated Agency to pay tax with interest in case of default, remain unchanged. Corresponding amendments have been made vide Notification No. 05/2026-Integrated Tax (Rate) dated 27.10.2026 (G.S.R. 931(E)) in Notification No. 27/2018-Integrated Tax (Rate) and Notification No. 05/2026-Union Territory Tax (Rate) dated 27.10.2026 (G.S.R. 932(E)) in Notification No. 26/2018-Union Territory Tax (Rate).
Effective date:
The Notification comes into force on 1st November, 2026, simultaneously with Notification No. 34/2026-Customs which omits the customs lists to which the earlier definition referred. The definition is dynamic, i.e., any addition or deletion of agencies in Appendix 4B by the DGFT will automatically apply for the purpose of the GST exemption.
Key takeaways for taxpayers and the industry:
- Jewellery exporters: The exemption on domestic procurement of gold, silver or platinum for export of jewellery continues without a break. Exporters should verify, on the date of each supply, that the supplying bank or agency figures in Appendix 4B of the HBP as currently amended, since the earlier customs lists will no longer be the reference point.
- Banks and nominated agencies: Only entities listed in Appendix 4B (Part A for gold and silver, Part B for gold only, and the other agencies nominated by the DGFT) can supply precious metals under the exemption. Agencies that have been dropped from Appendix 4B, or whose authorisation lapses, cannot extend the exemption and must charge GST at 3%.
- Customs side: The omission of S. No. 198 and Lists 13 to 15 of Notification No. 45/2025-Customs with effect from 01.11.2026 means that the specific customs concession linked to those lists is withdrawn; nominated agencies and banks should review the duty and IGST position on their imports of gold, silver and platinum under the customs law from that date, which is independent of the domestic GST exemption discussed here.
- Documentation: Since the exemption remains conditional, nominated agencies should continue to track the 90-day export and 120-day proof-of-export timelines for each supply, and exporters should ensure that shipping bills carry the correct GSTIN so that the proof of export is accepted by the agency.
Similar notifications have been passed under the Integrated Goods and Services Tax Act, 2017 (“the IGST Act”) and the Union Territory Goods and Services Tax Act, 2017 (“the UTGST Act”).
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/10/N.-No.-05-2026-CT-UT-IG-Rate.pdf
