Page 8 - Bullion World Volume 3 Issue 2 February 2023

Bullion World | Volume 3 | Issue 2 | February 2023

Budget 2023: Highlights of

announcements for the

Precious Metals Industry

1) Alignment of Customs Duty on Silver and Silver Dore:

Commodity BCD(%) AIDC(%) SWS(%) Total(5)

From To From To From To

Gold Bars 12.50 10 2.50 5.00 Nil Nil 15.00

Gold Dore 11.85 10 2.50 4.35 Nil Nil 14.35
Platinum 12.50 10 1.50 5.40 1.40 Nil 15.40

Silver Bars 7.50 10 2.50 5.00 0.75 Nil 15.00

Silver Dore 6.10 10 2.50 4.35 0.61 Nil 14.35

2) EGRs exempted from Capital Gain Tax
In order to promote the concept of Electronic Gold, it is proposed to exclude the conversion of the physical
form of gold into EGR, and vice versa by a SEBI-registered Vault Manager from the purview of 'transfer' for
the purposes of Capital gains. It is also proposed that the cost of acquisition of the EGR for the purpose of
computing capital gains shall be deemed to be the cost of gold in the hands of the person in whose name
Electronic Gold Receipt is issued, and the holding period for the purpose of capital gains would include the
period for which the assessee held gold prior to its conversion into EGR. Similarly, provision for conversion
from gold to EGR is also proposed."

3) Gold Jewellery: Hike in import duty
The import duty on articles made of precious metals falling under CTH 7113 and 7114 is increased from
22% to 25%. It is, however, being exempted from SWS. The import duty on intimation jewellery classified
under heading 7117 is being increased from 22% or INR 400/ Kg to 25% or INR 600/ Kg, whichever is
higher. It is, however, being exempted from SWS.

4) Lab-Grown Diamonds:
The BCD on seeds for use in the manufacture of rough lab-grown diamond is being reduced to nil subject
to IGCR condition for a period of two years. A Grant of INR 242 crore has been given to IIT- Madras to
promote R&D on LGD

8