Export drawback rates on gold and silver jewellery halved after import duty cuts.
The government has significantly reduced the drawback rates on exports of gold and silver jewellery, slashing them by more than half following the recent Budget’s major cut in import duties on these precious metals. The Department of Revenue issued a notification detailing these adjustments.
For gold jewellery exports, the drawback rate has been reduced to ₹335.5 from ₹704.1 per gram of net gold content. Similarly, the rate for silver jewellery and articles has been cut to ₹4,468 per kilogram of net silver content. The Duty Drawback Scheme, which reimburses import duties and internal taxes paid during the importation of goods used in manufacturing export products, has been adjusted to reflect the new lower import duties.
In the latest Budget, the import duty on gold and silver was reduced to 6 percent from 15 percent. Commenting on the change, Federation of Indian Export Organisations Director General Ajay Sahai stated that the reduction in duty drawback aligns with the lowered import duties on these precious metals.
The gems and jewellery sector saw a 7.45 percent contraction in exports, totaling USD 9.1 billion during April-July this fiscal year.
