Government cuts duty drawback rates on gold and silver jewellery exports following July hike

Fri Oct 16 2026

The revised rates lower export refunds for gold jewellery and select silver articles, with reductions of 3.1% and about 9%, respectively.

The Government has reduced duty drawback rates for exports of gold jewellery, silver jewellery and certain silver articles by up to 9%, lowering the refunds available to exporters under the revised schedule.

According to a Finance Ministry notification issued on October 15, 2026, the drawback rate for gold jewellery has been reduced to Rs 1,794.11 per gram from Rs 1,851.99, a decline of 3.1%. The rate for silver jewellery and certain silver articles has been lowered to Rs 26,859.02 per kg from Rs 29,501.09, a reduction of about 9%.

Duty drawback is a refund mechanism for duties paid on imported inputs used in manufacturing goods for export. It helps exporters recover certain costs associated with producing goods for overseas markets.

The latest revision follows an increase in duty drawback rates in July 2026, when the Government nearly doubled the rates for select categories of gold and silver jewellery exports to improve exporters’ competitiveness amid rising input costs and global uncertainties. The rate for gold jewellery and parts was raised to Rs 1,851.99 per gram from Rs 773.17 per gram, while the rate for silver jewellery and articles made of silver increased to Rs 29,501.09 per kg from Rs 14,990.66 per kg.

According to Surendra Mehta, secretary of the India Bullion and Jewellers Association (IBJA), the latest reduction is linked to the decline in gold and silver prices, which has lowered the actual import duty payable on these metals. He said the correction was necessary because duty drawback rates were calculated in absolute monetary terms rather than as a percentage.

Source: https://retailjewellerindia.com/