August 24th 2024.
The government has recently made some changes in the export rates for gold and silver jewellery, as a result of the Budget's decision to significantly reduce import duties on these precious metals. This move was announced through a notification issued by the Department of Revenue.
Specifically, the drawback rates for gold and silver jewellery exports have been reduced by more than half. For gold jewellery, the rate has gone down from Rs 704.1 to Rs 335.5 per gram of net gold content in the article. Meanwhile, the rate for silver jewellery and articles has been brought down to Rs 4,468 per kilogram of net gold content.
This reduction in drawback rates is a part of the Duty Drawback Scheme, which aims to refund import duties and internal taxes paid on imported goods that are used in manufacturing products for exports. With the recent Budget decision to decrease import duties on gold and silver from 15% to 6%, it was necessary to adjust the drawback rates accordingly.
According to Ajay Sahai, the Director General of the Federation of Indian Export Organisations, this notification was issued to align the duty drawback rates with the lowered import duties on gold and silver. He also mentioned that the gems and jewellery exports have seen a decline of 7.45% in the first four months of this fiscal year, standing at $9.1 billion.
Overall, these changes in drawback rates and import duties are expected to have a significant impact on the export of gold and silver jewellery, and will likely affect the gems and jewellery industry as a whole.
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