A landmark budget for the gem & jewellery industry

Gold import duty reduced from 12.5% to 7.5%Silver import duty reduced from 12.5% to 7.5%Duty on Platinum reduced to 10%Clarification Sought - Equalisation Levy of…

  1. Gold import duty reduced from 12.5% to 7.5%
  2. Silver import duty reduced from 12.5% to 7.5%
  3. Duty on Platinum reduced to 10%
  4. Clarification Sought – Equalisation Levy of 2% not applicable on B2B Purchases from International Diamond Auctions
  5. A new Sebi regulated gold exchange has been announced

Mumbai, 1st February 2021: GJEPC welcomes Hon’ble Finance Minister Nirmala Sitharaman’s visionary budget; reduction on customs duty on raw materials like gold, silver and platinum to boost jewellery exports.

The Finance Minister Nirmala Sitharaman has announced a slew of measures to boost Gem & Jewellery exports by cutting import duty on precious metals such as gold, silver and platinum.

  1. The import duty on gold and silver has been reduced from 12.5% to 7.5%
  2. Import duty on Platinum, Pallidum, etc has been reduced from 12.5% to 10%
  3. Import duty on Silver Dore Bar from 11% to 6.1%
  4. The import duty on Gold/Silver Findings has been cut from 20% to 10%
  5. Import duty on Spent catalyst or ash containing precious metals from 11.85% to 9.2%
  6. Precious Metal Coins from 12.5% to 10%.

Colin Shah, Chairman, GJEPC said,“We sincerely thank the Hon’ble Prime Minister and Hon’ble Finance Minister for this bold and pragmatic growth-oriented budget.

The reduction in import duty from 12.5 per cent to 7.5 per cent will help the Gem & Jewellery exports become globally competitive.  Reduction in duty on raw materials would give the much-needed boost to the sector and help it to move to the next level. In fact, high duty on precious metal had made our exports uncompetitive leading to large Indian diaspora/NRI, moving to Dubai, Hong Kong or other centres to buy jewellery which was largely impacting the employment as well as business in India. Along with this the decrease of import duty on jewellery findings to 10% will help the jewellery manufacturer exporters in a big way. ”

“Another relief for the industry was the clarification on Equalisation Levy. What we understand that from the budget is that Online Equalisation Levy of 2% is now not applicable on B2B purchases from International Diamond Auctions. This will help our manufacturers of diamonds to buy directly from miners. Sincere thanks to Hon’ble FM for this relief.” adds Colin Shah

FM has also announced setting up of a new Sebi regulated gold exchange. The Finance Minister also announced that Securities and Exchange Board of India (Sebi), will be notified as the capital markets watchdog as regulator for gold exchanges. “We welcome the move as this will surely ease marketability and sale of gold,” added Colin.

Thanking the Prime Minister and Finance Minister for coming out with a visionary budget, Vipul Shah, Vice Chairman, GJEPC said, “The finance minister has done a remarkable job by presenting a bold budget in these difficult times. The budget focused on investments in the infrastructure sector, consolidation of regulations, implementing digitisation in several sectors and reducing regulatory forbearance. There were also various measures to improve consumptions. We want to congratulate finance minister and prime minister for coming out with a landmark budget.”

About The Gem and Jewellery Export Promotion Council (GJEPC)

The Gem & Jewellery Export Promotion Council (GJEPC), set up by the Ministry of Commerce, Government of India (GoI) in 1966, is one of several Export Promotion Councils (EPCs) launched by the Indian Government, to boost the country’s export thrust, when India’s post-Independence economy began making forays in the international markets. Since 1998, the GJEPC has been granted autonomous status. The GJEPC is the apex body of gems & jewellery industry and today represents 7000 exporters in the sector.  With headquarters in Mumbai, GJEPC has Regional Offices in New Delhi, Kolkata, Chennai, Surat and Jaipur, all of which are major centres for the industry. It thus has a wide reach and is able to have a closer interaction with members to serve them in a direct and more meaningful manner. Over the past decades, GJEPC has emerged as one of the most active EPCs, and has continuously strived to both expand its reach and depth in its promotional activities as well as widen and increase services to its members.