Gold and silver are set to become more expensive as the government has changed the duty structure on precious metals from specific to value-linked. The change will enable the exchequer to rake in an additional 600 crore rupees during the remaining months of this fiscal. As per the changes, customs and excise duty will now be levied on the value of the precious metals instead of a fixed amount, meaning that the incidence of duty will move up with the rise in prices of the goods, thereby making them more expensive.
According to a government notification, the import duty on gold has been fixed at 2 per cent of the value, instead of the earlier rate of 300 rupees per 10 grams. On silver, the import duty has been pegged at 6 per cent, as against 1,500 rupees per kilogram earlier. Diamonds, too, will now attract an import duty of 2 per cent. With respect to excise, the duty on gold has been fixed at 1.5 per cent of the value, as against the earlier fixed rate of 200 rupees per 10 grams. Silver will attract excise of 4 per cent, as compared to a fixed duty earlier of Rs 1,000 per kilogram.
The ad-valorem rates of excise and customs on gold, silver and platinum have come into effect from today.
The rupee strengthened a hefty 64 paise, to close at two-month high of 50.74 against the dollar.
Gold prices rose 35 rupees, to 27,925 rupees per ten grams in Delhi. Silver gained 575 rupees, to 52,725 rupees per kilo.
Related Excise Duty and Custom Duty Notifications:-
- Increase in customs duty on Silver and Gold in any form imported into India, other than through post, courier or baggage
- Increase in customs duty on Gold and silver in any form when imported into India by an eligible passenger
- Amends Notification No. 5/2006-Central Excise, dated the 1st March, 2006 related to rates of duty on Gold and Silver bar
- Amends Notification No. 23/2003-Central Excise, dated the 31st March, 2003
