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CS Professional · IFSCA - Regulations, Listing and Compliances · India International Bullion Exchange (IIBX)

Orion Gold Refiners, an overseas entity, wants to sell gold on IIBX to Indian buyers. A compliance officer reviews how the gold enters the IFSC for trading. Which view is correct?

Gold entering a GIFT IFSC vault for IIBX trading is handled under the IFSC's special customs treatment, and duty is not charged at entry or on trades within the IFSC. Customs duty arises only when the bullion is cleared into the Domestic Tariff Area.

  1. AGold entering the IFSC vault for IIBX is cleared as a domestic sale before listing
  2. BGold brought into the IFSC for sale on the exchange is dealt with under the IFSC's special customs treatment, and duty arises only when it is cleared to the DTACorrect
  3. CCustoms duty on gold is levied twice, first at entry into the IFSC and again on sale on the exchange
  4. DGold may enter the IFSC only after the foreign seller pays Indian GST on trade value

Explanation

Entry into the IFSC is treated as movement to a territory outside the customs territory, so no duty arises on entry or on trading inside the IFSC. Duty is triggered only on clearance into the DTA. Double levy is incorrect.

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