According to the new notification, for gold jewellery, the duty drawback rate has been reduced from ₹704.1 per gram of net gold content (with a purity of 0.995 or more) to ₹335.50 per gram.
The rate for silver jewellery and other silver items has been reduced from ₹8.949 per kilogram (purity 0.999) to ₹4,468.10 per kilogram, ensuring consistent rates across all silver products.
Duty drawback rates are intended to reimburse exporters for customs duties paid on imported inputs, thereby ensuring that goods intended for export are not subject to internal taxes.
These rates have been adjusted to reflect changes in import duties on gold and silver in the Budget.
At that time, the drawbacks were not reduced accordingly, leading to a mismatch that allowed gold and silver importers to import the precious metals at a lower price but claim a higher drawback when exporting. This addresses that mismatch.
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