The Ministry of Finance has announced a substantial increase in duty drawback rates for select gold and silver jewellery export categories, offering a timely relief to India's gem and jewellery exporters amid rising 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, under Chapter 71 of the Customs Tariff. The updated rates have come into effect immediately.
The revised duty drawback rates are as follows:
Tariff Item 711301: Increased from INR 773.17 to INR 1,851.99
Tariff Item 711302: Increased from INR 14,990.66 to INR 29,501.09
Tariff Item 711401: Increased from INR 14,990.66 to INR 29,501.09
The revision follows a sustained rise in gold and silver prices, which has significantly increased the duties and taxes embedded in exported jewellery. As duty drawback is designed to reimburse exporters for duties paid on imported inputs used in manufacturing, the earlier rates had become less representative of the actual costs incurred.
By revising the rates upward, the government aims to improve exporters' cash flow, reduce working capital pressures and support more competitive pricing in international markets. The move is expected to particularly benefit MSME jewellery manufacturers by improving the financial viability of export orders.
The revision also addresses a long-standing demand from the Gem & Jewellery Export Promotion Council (GJEPC), which had urged the government to update the All Industry Rates of Duty Drawback in line with prevailing precious metal prices, ensuring exporters receive a more accurate reimbursement of input duties.
