Gold Jewellery Drawback Rates Raised to Rs. 131.26 per gm, Silver Jewellery to Rs. 765.90 per kg

· Centre Hikes Duty Drawback on Jewellery to Soften US Tariff Blow

· The hike comes despite the cut in gold customs duty to 6% from 15%, and on gold ore the duty was reduced to 5.35% from 14.35% in July 2024. Since then, gold prices have risen from ₹70,000 to over ₹1,00,000—a 40% increase—but the drawback has gone up by only 17%.

The government has raised duty drawback rates on certain jewellery and precious metal items to provide relief to exporters in the sector, which has been hit hard by the steep US import taxes.

According to a notification issued by the Department of Revenue on Monday (25.08.2025), the duty drawback rate on silver jewellery and articles of silver has been increased from ₹335.50 to ₹466.76 per 10 grams. The rate on gold jewellery and articles of gold has been raised from ₹4,468.10 to ₹5,234.00 per 10 grams. The relief on platinum jewellery and articles of platinum has also been revised upwards from ₹4,468.10 to ₹5,234.00 per 10 grams. In the case of silver jewellery, the hikes is 40%.

US president Donald Trump's administration has imposed a reciprocal tariff of 25% on Indian goods entering America besides an additional 25% for New Delhi's purchases of Russian oil. These tariffs come into effect on Wednesday, 27 August, 2025. Gold, Silver and Diamond jewellery is not covered under Annex II of exemption from Trump Tariff.

Relieving pressure

Duty drawback scheme rebates the incidence of Customs and Central Excise duties, chargeable on imported and excisable material respectively when used as inputs for goods to be exported.

The revision comes at a time when India’s jewellery exports are under pressure from slowing global demand and changing sourcing norms in key markets. Exporters have long sought higher drawback rates to offset rising input costs, especially for gold, silver and platinum, which form the backbone of the industry.

India is one of the world’s largest exporters of gems and jewellery, with the US being its biggest market. In FY25, exports from the sector to the US stood at $9.94 billion, marginally up from $9.91 billion in FY24. Shipments to the US accounted for about 33% of India’s total gems and jewellery exports, which were valued at $29.80 billion in FY25.

However, shipments to the US and EU have slowed in recent months due to tariff uncertainties and softer consumer spending.

Exporters are of the view that the increase in duty drawback rates would partly cushion the impact of higher costs and provide a competitive edge at a time when rivals such as Turkey and Thailand are aggressively pushing their jewellery exports. “While this is a welcome step, further support will be needed in the coming months to sustain export momentum,” said Vipul Shah, former chairman of the Gem and Jewellery Export Promotion Council.

[Notification No. 51/2025- Customs (N.T.) dated 25 August, 2025]

Amendment to Notification No. 77/2023-Customs (N.T.) dated 20.10.2023 - Revision of AIR of duty drawback of Gold jewellery and silver jewellery/articles.

G.S.R……. (E). – In exercise of the powers conferred by section 75 of the Customs Act, 1962 (52 of 1962) and sub-section (2) of section 37 of the Central Excise Act, 1944 (1 of 1944), read with rules 3 and 4 of the Customs and Central Excise Duties Drawback Rules, 2017, the Central Government hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 77/2023 – Customs (N.T.), dated the 20th October, 2023, published vide number G.S.R. 792 (E), dated the 20th October, 2023, namely:-

In the said notification, in the Schedule, in Chapter -71, -

(i) against tariff item 711301, in the entry in column (4), for the figures “335.50”, the figures “466.76” shall be substituted;

(ii) against tariff item 711302, in the entry in column (4), for the figures “4468.10”, the figures “5234.00” shall be substituted;

(iii) against tariff item 711401, in the entry in column (4), for the figures “4468.10”, the figures “5234.00” shall be substituted.

[F.No.605/13/2023-(DBK)]