Govt cuts drawback rates on exports of gold, silver jewellery

government has reduced drawback rates on exports of gold and silver jewellery by more than half to just for significant cut in import duties on se precious metals in Budget.

A tification regarding this was issued by Department of Revenue.

On export of gold jewellery, drawback rate has been brought down to Rs 335.5 from Rs 704.1 per gram of net gold content in article. rate of silver jewellery and articles of silver have been cut to Rs 4,468 per kilogram of net gold content in an article.

Duty Drawback Scheme refunds import duties and internal taxes, which are paid while importing goods, which are, in turn, used for manufacturing products for exports.

In Budget, import duty on gold and silver to 6 per cent from 15 per cent.

Through this tification, "duty drawback on gold and silver jewellery was reduced as duty on gold and silver lowered in budget", Federation of Indian Export Organisations Director General Ajay Sahai said.

gems and jewellery exports during April-July this fiscal contracted by 7.45 per cent to $9.1 billion.