The Budget introduced a new tariff line to distinctly differentiate gold imports in bar form from those in other forms, taking into account the market disruption caused by platinum alloy imports.
A new tariff line has been created to differentiate gold imports in bar from from those in other forms. In line with this, silver with 99.9 per cent purity, gold with 99.5 per cent purity and platinium of 99 per cent purity will be classified under headings 7106, 7108 and 7110 respectively.
A DGFT notification is expected to clarify restrictions on platinum alloys, ensuring that importers who previously imported pure platinum do not face challenges under the licensing regime.
Without such clarification, these importers may encounter procurement difficulties during exports if the licensing process applies.
Demand boost
Colin Shah, MD, Kama Jewelry said the duty reduction on jewellery will definitely boost the demand in the domestic market, specially in luxury. Similarly, slashing of duty on platinum finding is a bold move which will prove beneficial for the entire gems and jewellery industry, he said.
Another big positive step in the Budget was increasing the MSME turnover limit from ₹250 crore to ₹500 crore, is another bold announcement, which will propel the growth and strengthen the MSMEs, he added.
The Budget also provided some rejoice to the diamond sector by removing IGCR condition for import of duty free LGD (Lab Grown Diamond) seeds which will further increase the appeal of LGDs and boost its demand. Provision of a separate HS code for platinum and gold alloys is another positive step that will prevent malpractices and ensure fair play in the industry.
Praveena Rai, MD & CEO, MCX said the removal of basic customs duty on waste and scrap of metal commodities such as copper, lead, zinc and others has the potential to boost the circular economy, enhance raw material supplies and support domestic manufacturing.
