Exporters of gold and silver jewellery will now get higher refunds under the Drawback Rules. Finance Ministry has notified a quarterly review of All India Rates of Duty Drawback for gold jewellery and silver jewellery/articles.

Accordingly, new rate under tariff item 711301 (pertaining to articles of jewellery and parts, made of gold) will be ₹773.17 per gram of net gold content in the jewellery as against ₹639.59. For tariff item 711302 (pertaining to articles of jewellery and parts thereof, made of silver including plated with precious metal), rate would be ₹14,990.66 per kg of net silver content in the jewellery as against ₹9089.33. This rate will also be applicable for tariff item 711401 (refers to articles made of silver, other than jewellery).

Duty drawback serves as a refund mechanism that reimburses exporters for customs and excise duties paid on imported inputs used in manufacturing export goods. It is a World Trade Organization-vetted scheme administered by the Central Board of Indirect Taxes and Customs to promote exports. It rebates the incidence of customs and excise duties, chargeable on imported and excisable materials respectively, when used as inputs for goods to be exported.

The revision in duty drawback rates aims to provide relief to Indian gems and jewellery exporters, who are facing higher input costs and subdued demand. The move is expected to partially offset the impact of these developments and help exporters stay competitive internationally. Also, the hike in the duty may aid exporters to see improved refund inflows, revise export prices and renegotiate contracts

Gold and silver prices are seeing high volatility after a very sharp increase in recent times. On Friday, the yellow metal prices were up by ₹420 to ₹1,51,479 per 10 g against ₹1,51,059 on Thursday. In fact, the precious metal opened weak by ₹395 at ₹1,50,664 but gained ground on a weak rupee. At the same time, silver prices plunged ₹2,577 to ₹2.38 lakh per kilogram in the national capital on Friday, tracking weak trends and subdued demand by investors. On the Multi Commodity Exchange, the white metal for May delivery depreciated by ₹2,577, or 1.07 per cent, to ₹2,38,936 per kg.

Experts say that these days, gold prices in domestic market driven largely by West Asia developments, particularly tensions involving Iran, Israel, and US presence in the Strait of Hormuz, which keep uncertainty elevated. With conflicting signals and no clear resolution, gold is expected to stay news-driven and volatile, they said.

Published on April 25, 2026