Government Slashes Customs Duty on Precious Metal Jewellery

The Indian government plans to lower the basic customs duty on jewellery from precious metals to 20% from 25% in the 2025 Budget. The duty on platinum findings will drop to 5%, and a new HS code for platinum and gold alloys will be introduced, which might boost domestic demand.

The Indian government has taken a significant step to make imported jewellery more affordable by proposing a reduction in the basic customs duty from 25% to 20% starting in the 2025 fiscal year.

According to the Budget document for 2025-26, this cut will apply to articles of jewellery and parts, as well as to goldsmiths' and silversmiths' wares, categorized under HS codes 7113 and 7114. Additionally, the duty on platinum findings will see a notable decrease to 5%, accompanied by an Agriculture Infrastructure and Development Cess of 1.4%.

Colin Shah, Managing Director of Kama Jewelry, highlighted that the new HS code for platinum and gold alloys is a positive change to prevent malpractices and ensure industry fairness, potentially amplifying domestic demand in a country famed for high jewellery consumption.

(With inputs from agencies.)