Government Raises Duty Drawback Rates For Gold, Silver Jewellery Exports

The government has increased duty drawback rates for gold and silver jewellery, a move that would 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, according to a notification of the finance ministry.

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,” the notification has said.

An official of 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.

“The government’s decision to raise the rates would help in increasing the competitiveness of gold and silver jewellery,” the official said.

During the April-October period this fiscal, exports of gems and jewellery dipped by about 2 per cent to USD 18.25 billion. Gold jewellery during the period has increased about 3 per cent to USD 7.3 billion.

Silvery jewellery has also jumped to USD 737.7 million from USD 407.9 million during April-October 2018-19. Under duty drawback, exporters get a refund of all duty and taxes which were paid for the inputs against the exported products.