Government Halves Drawback Rates on Gold, Silver Jewellery Exports

The government has drastically reduced the drawback rates on the export of gold and silver jewellery following a significant cut in import duties on these precious metals as announced in the Budget. The new rates, notified by the Department of Revenue, aim to align export benefits with lower import costs.

The government has halved the drawback rates on exports of gold and silver jewellery, reflecting a substantial reduction in import duties on these precious metals announced in the Budget.

The Department of Revenue issued a notification stating the new rates: Rs 335.5 per gram for gold jewellery, down from Rs 704.1, and Rs 4,468 per kilogram for silver jewellery and articles.

The Duty Drawback Scheme, which refunds import duties and internal taxes paid during importation, has been adjusted to align with the new import duty rates—6% for both gold and silver, down from 15%.

Ajay Sahai, Director General of the Federation of Indian Export Organisations, explained that the reduced drawback on gold and silver jewellery was necessary due to the lower import duties.

The gems and jewellery export sector has contracted by 7.45% to USD 9.1 billion during April to July this fiscal year.

(With inputs from agencies.)