The Indian government is working to restore a long-standing tax exemption for banks importing gold after a recent notification mistakenly withdrew it. Surendra Mehta, National Secretary of the India Bullion and Jewellers Association (IBJA), stated that a rectification order is expected within 48 to 72 hours. In the interim, banks have resumed operations by paying a 3% integrated goods and services tax (IGST) upfront, ensuring that jewelry manufacturers and retailers can access gold. The halt in shipments had previously caused costs to rise by ₹1,200 (roughly $14 USD) per 10 grams, squeezing profit margins for small jewelers. Consequently, average ticket sizes for jewelry purchases have dropped from ₹85,000 (roughly $1,020 USD) to ₹62,000 (roughly $755 USD) as customers shift to lighter, lower-carat products. India, the world's second-largest gold consumer, imported 35 tons of gold in April 2025, significantly lower than its monthly average of 60 tons in the previous fiscal year.