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Govt increases duty drawback rates for gold, silver jewellery exports

19 Nov 2019 Evaluate

The government has increased duty drawback rates for gold and silver jewellery. This move will make Indian exports from these sectors more competitive in the global market. The drawback rates have been raised to Rs 372.9 per gram for gold jewellery from Rs 272 per gram. Similarly, for silver jewellery, it has been raised to Rs 4,332.2 per kilogram, from Rs 3,254. This notification shall come into effect from November 16, 2019.

Under duty drawback, exporters get a refund of all duty and taxes which were paid for the inputs against the exported products. The Gems and Jewellery Export Promotion Council said the exporters were demanding an increase in the drawback rates as the government in the last Budget had raised import duty on gold to 12.5 per cent from 10 per cent. Besides, the government's decision to raise the rates would help in increasing the competitiveness of gold and silver jewellery.

Meanwhile, during the April-October period this fiscal, exports of gems and jewellery dipped by about 2 per cent to $18.25 billion. Gold jewellery during the period has increased about 3 per cent to $7.3 billion. Silvery jewellery has also jumped to $737.7 million from $407.9 million during April-October 2018-19.

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