Government reduces duty drawback on gold and silver exports, easing pressure on jewellery industry

The government has reduced the duty drawback rates on the export of gold and silver jewellery. This move comes shortly after Zee Business reported on the issue, highlighting discrepancies in the existing duty rates.

The duty drawback on gold jewellery exports has been slashed from Rs 704.10 per gram to Rs 335.50 per gram, while the rate for silver jewellery and products has been reduced from Rs 8,949 per kilogram to Rs 4,468.10 per kilogram.

Zee Business broke the news yesterday, drawing attention to the fact that although the budget had reduced the duty on gold and silver by 9%, the duty drawback had not been proportionally adjusted until now.

This reduction has been formalized under the provisions of Section 75 of the Customs Act, 1962, and Section 37 of the Central Excise Act, 1944, in conjunction with the Customs and Central Excise Duty Drawback Rules, 2017. The notification, issued by the Ministry of Finance (Department of Revenue) under Notification No. 77/2023-Customs (N.T.), dated October 20, 2023, has been amended accordingly.

The new rates, effective immediately, are expected to have a significant impact on the jewellery export industry, which had been facing challenges due to the higher duty drawback rates prior to this adjustment.

This update follows the government’s commitment to ensuring fair trade practices and supporting exporters in the competitive global market. The industry is now looking forward to further regulatory adjustments that could benefit other sectors as well.