GST exemption for Gold and Silver
With effect from 1 Oct 2012, the importation and supply of IPM in Singapore are exempt from GST. The supply of IPM which is exported continues to be zero-rated. However, only precious metals in the form of a bar, ingot, wafer and coin which meet certain criteria can qualify as IPM. To provide certainty, precious metal coins that qualify as IPM are prescribed in the GST Act. Precious metals which do not meet the criteria cannot qualify as IPM and the supply of non-IPM continues to be taxable. Examples of non-IPM are jewellery, scrap precious metals, numismatic coins and precious metals which are refined by refiners who are not on the “Good Delivery” list of the London Bullion Market Association or the London Platinum and Palladium Market.
Criteria for IPM bar, ingot and wafer
To qualify for GST exemption, the precious metal must meet all of the following criteria:
(a) It is gold of at least 99.5% purity, silver of at least 99.9% purity or platinum of at least 99% purity.
(b) It is capable of being traded on the international bullion market.
A precious metal bar, ingot or wafer refined by a refiner with the following accreditation/ endorsement is regarded as meeting this criterion:
(i) For gold and silver, a refiner in the current or former “Good Delivery” list of the London Bullion Market Association (LBMA)
(ii) For platinum, a refiner in the current or former “Good Delivery” list of the London Platinum & Palladium Market (LPPM)
(iii) A refiner who intends to be in the “Good Delivery” list of the LBMA (for gold and silver) or LPPM (for platinum) and is endorsed by the International Enterprise (IE) Singapore.