look news india
The jewellery industry is currently in its golden period because the import duty on gold and silver has been reduced from 15 per cent to 6 per cent in the Union Budget. But now a shocking incident has happened.
Due to which the jewelery market is also seeing a boom. Because, the government has forgotten to revise the duty drawback rate. Which is still at 15 percent. Due to the discrepancy, exporters can possibly earn more than what they pay in customs duty. In this regard, the national officer of the Indian Bullion and Jewelers Association (IBJA) said, “We request the government to immediately implement the duty refund in line with the current low rate of import duty to avoid loss of revenue. IBJ has also alerted the government through social media in this matter. Exporters are generally reimbursed by the government at a pre-determined rate for taxes paid on raw materials (eg, gold and silver) through the drawback option, as it leads to more exports of value-added products. Generally, whenever a revision in rates on raw materials is announced, the drawback rates are also revised according to the change in duty. However, the clearance notification regarding gold and silver has not been announced by the government yet. The Duty Entitlement Passbook (DEPB) scheme is an export promotion scheme that allows refund of duty paid by exporters on import of input materials. The drawbacks are paid in cash while DEPB benefits are paid in the form of scrips which can be used to pay import duty.