The government has once again granted permission to the gold and silver jewellery exporters to replenish the precious metal duty-free after selling it at international exhibitions. After the implementation of the GST (Goods & Services) tax, the facility of duty-free replenishment of precious metals was put to an end. However, this move can prove to be helpful in promoting the growth of this sector.
A notice issued by the Directorate General of Foreign Trade (DGFT) on Monday amending a provision of the foreign trade policy (FTP) which had stated that “no
replenishment” of the precious metal shall be available to the exporter or manufacturer where they are availing benefits in respect of the exported product.
An official of the Gems and Jewellery Export Promotion Council of India (GJEPC) considered this step to be the need of the hour as many exporters were clamoring for the renewal of this facility.
"It is the re-introduction of the replenishment scheme for gold and silver on goods exported/sold in overseas exhibitions," stated the official.
Adding to it he confirms “the duty-free replenishment was not available for jewellery sold at exhibitions abroad, so exporters were not selling, but now, they will get duty-free gold for the quantity sold abroad, which will give a boost to exports.”
Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai added, "It was a long-pending demand and logical as IGST (integrated goods and services tax) and ITC (input tax credit) refund provide a refund of GST while replenishment give benefits of basic customs duty. The two are mutually exclusive."
