The Central Government has amended the definition of “Nominated Agency” under the GST exemption framework for specified supplies of precious metals. Notification No. 05/2026-Central Tax (Rate), dated 27 October 2026, links the definition directly to Appendix 4B of the Handbook of Procedures, as amended by the Directorate General of Foreign Trade (DGFT) from time to time. The amendment takes effect from 1 November 2026.

1. What Has Changed?

The amendment substitutes clause (c) of the Explanation to Notification No. 26/2018-Central Tax (Rate), dated 31 December 2018.

Under the revised definition, a “Nominated Agency” means an entity mentioned in Appendix 4B of the Handbook of Procedures, as amended by DGFT from time to time.

Previously, the definition relied on specified lists under customs notifications. The revised approach directly references the DGFT's Appendix 4B, allowing the GST definition to reflect changes made to that list without requiring the definition itself to be rewritten each time.

2. Why Is This Amendment Important?

Notification No. 26/2018-Central Tax (Rate) provides an exemption framework for specified intra-State supplies of gold, silver or platinum by nominated agencies to registered persons, subject to the prescribed conditions.

The corresponding integrated tax framework is governed by Notification No. 27/2018-Integrated Tax (Rate), dated 31 December 2018.

The updated definition is important for businesses involved in precious-metal imports, exports and supplies because eligibility for the concession depends on whether the supplying entity qualifies as a nominated agency under the applicable provisions.

The amendment aligns the GST framework with the list maintained by DGFT under the Foreign Trade Policy framework.

3. Corresponding IGST Amendment

The Central Government has also issued Notification No. 05/2026-Integrated Tax (Rate), dated 27 October 2026, amending Notification No. 27/2018-Integrated Tax (Rate).

Both amendments take effect from 1 November 2026, ensuring consistent treatment under the central and integrated tax frameworks.

4. What Should Exporters and Nominated Agencies Do?

Businesses should take the following steps before applying the amended provisions:

1. Check Appendix 4B: Verify whether the nominated agency appears in the latest version of the DGFT's Handbook of Procedures.

2. Monitor DGFT amendments: Recheck the list whenever DGFT issues a public notice revising Appendix 4B.

3. Verify eligibility: Confirm that the transaction, recipient and precious metal satisfy the applicable GST exemption conditions.

4. Maintain supporting records: Keep relevant DGFT listings, registration details, purchase documents and transaction records for audit and compliance purposes.

The amendment does not create a blanket GST exemption for every transaction involving precious metals. The conditions prescribed under the applicable exemption notification must still be satisfied.

Conclusion

The revised definition simplifies the link between GST concessions and DGFT's list of nominated agencies. From 1 November 2026, exporters, nominated agencies and other businesses dealing in precious metals should verify the latest Appendix 4B listing before relying on the exemption.

For expert guidance on this topic, contact your tax professional today.