In a significant boost for India’s gem and jewellery exporters, the Ministry of Finance has substantially increased duty drawback rates for key gold and silver jewellery export categories. The move is expected to improve exporters’ liquidity, reduce working capital costs and strengthen the global competitiveness of Indian jewellery at a time of elevated precious metal prices.
The revised rates were notified by the Department of Revenue through Notification No. 64/2026-Customs (N.T.), dated 16 July 2026, amending the duty drawback schedule under Chapter 71 of the Customs Tariff. The changes take immediate effect.
Under the revised notification:
- Tariff Item 711301: Duty drawback increased from INR 773.17 to INR 1,851.99
- Tariff Item 711302: Duty drawback increased from INR 14,990.66 to INR 29,501.09
- Tariff Item 711401: Duty drawback increased from INR 14,990.66 to INR 29,501.09
The revision comes in response to the sharp rise in gold and silver prices over the past year, which has increased the duties and taxes for exported jewellery. Since duty drawback is intended to refund duties paid on inputs used in export production, the previous rates no longer reflected the actual incidence of duties borne by exporters.
By more than doubling the drawback rates for the affected categories, the government has narrowed this gap, enabling exporters to recover a larger portion of their costs. The revision is expected to ease working capital requirements, improve cash flows, support more competitive export pricing and enhance the profitability of export orders, particularly for MSME manufacturers.
GJEPC had sought a revision of the All Industry Rates of Duty Drawback to reflect prevailing precious metal prices and ensure exporters receive a more realistic reimbursement of duties incurred during manufacturing.