Exporters of gold and silver jewellery will benefit from increased refunds under the Drawback Rules, as announced by the Finance Ministry. A quarterly review of the All India Rates of Duty Drawback for gold and silver jewellery has been implemented.
The revised rate for tariff item 711301, which pertains to gold jewellery and related articles, has been set at ₹773.17 per gram of net gold content, up from the previous rate of ₹639.59. Meanwhile, for tariff item 711302, which covers silver jewellery and articles, the new rate is ₹14,990.66 per kilogram of net silver content, compared to the earlier rate of ₹9,089.33. This revised rate will also apply to tariff item 711401, which refers to articles made of silver, excluding jewellery.
Duty drawback is a mechanism that reimburses exporters for customs and excise duties on imported inputs used in the manufacturing of export goods. This scheme, vetted by the World Trade Organization, is administered by the Central Board of Indirect Taxes and Customs, and aims to promote exports by offsetting the customs and excise duties incurred on imported and excisable materials respectively.
The recent adjustment in duty drawback rates seeks to provide relief to Indian gems and jewellery exporters facing rising input costs and lower demand. This initiative is expected to help mitigate the impact of these challenges, allowing exporters to maintain international competitiveness. Additionally, the increased duty may enhance refund inflows for exporters, enabling them to adjust export prices and renegotiate contracts.
Gold and silver prices have been experiencing significant volatility following substantial recent price increases. On Friday, gold prices rose by ₹420, reaching ₹1,51,479 per 10 grams, compared to ₹1,51,059 the previous day. Despite an initial decline of ₹395 to ₹1,50,664, prices rebounded as the rupee weakened. Conversely, silver prices fell by ₹2,577 to ₹2.38 lakh per kilogram in the national capital on Friday, amidst weak demand and market trends. The Multi Commodity Exchange reported a 1.07% decline for silver futures, with the May delivery dropping to ₹2,38,936 per kilogram.
Experts indicate that current gold prices in the domestic market are heavily influenced by developments in West Asia, particularly the tensions involving Iran, Israel, and the U.S. presence in the Strait of Hormuz, which has created an environment of uncertainty. With conflicting signals and no clear resolution, experts anticipate ongoing fluctuations in gold prices driven by news events.
Published on April 25, 2026.
