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Informist, Saturday, Feb. 1, 2025

MUMBAI – The Union Budget for 2025-26 (Apr-Mar) has proposed creating a new tariff code for articles predominantly containing some amount of gold and silver imported as an alloy of platinum. This was a part of the Budget presented by Finance Minister Nirmala Sitharaman on Saturday. 

The proposal to create new tariff lines is to distinguish precious metals-–containing 99.9% or more by weight of silver, containing 99.5% or more by weight of gold, containing 99% or more by weight of platinum under headings 7106, 7108, and 7110 respectively, the Budget document said. 

The basic customs duty on gold and silver jewellery, and parts thereof has been reduced to 20% from 25% and the basic customs duty on platinum findings has been reduced to 5% from 25%. "To stop the use of platinum alloy under the guise of gold, we welcome the creation of new tariff lines which will be effective from May 1, 2025. However, the basic objective of this change as per the finance bill is reduction of slab rate and hence, industry is awaiting new rates effective from May 1, 2025," said Surendra Mehta, national secretary, India Bullion and Jewellers Association.

Traders were exploiting loopholes by registering alloys containing gold as platinum to avoid higher levies. "Provision of a separate HS (Harmonised System) code for platinum and gold alloys is another positive step that will prevent malpractices and ensure fair play in the industry," said Colin Shah, the managing director, Kama Jewelry.

The Gems and Jewellery Export Promotion Council had earlier made a representation with the government to address the issue of classification of alloys of platinum, predominantly containing gold, which invariably led to claims of unwarranted customs duty exemptions for the import of platinum under the India-UAE Comprehensive Economic Partnership Agreement.  End

Reported by Ashutosh Pati and Sandeep Sinha

Edited by Akul Nishant Akhoury

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