Government increases duty drawback rates on gold and silver jewellery exports

By

Isabelle Crossley

Published
Nov 19, 2019

With the aim of allowing Indian businesses the ability to be more competitive in the global jewellery market, the government has increased duty drawback rates on gold and silver jewellery exports.

The government has increased the duty drawback rate for gold jewellery from Rs 272 ($3.78) per gram to Rs 372.9 per gram, the Ministry of Finance shared in a notification, the Press Trust of India reported. The government also raised duty drawback rates for silver jewellery from Rs 3,254 per kilogram to Rs 4,332.2 per kilogram. 

The new rates came into effect on November 16 and are intended to help to increase Indian gem and jewellery exports. The duty drawback system allows exporters to get refunds of all duty and taxes paid on inputs against the exported products.

The Gem and Jewellery Export Promotion Council had repeatedly asked the Central Government to roll out more measures to support the industry. Along with previously asking for an increase in the duty drawback rate on jewellery exports, the GJEPC has also requested the government amend taxation regulations to allow businesses to sell rough diamonds in Mumbai’s Special Notified Zone, review the Gold Mining Policy, and review the e-commerce polish for small jewellery sales.