The Indian government has increased customs duty on gold and silver to 5%, platinum to 5.4%, and catalysts to 4.35%. This change is part of ongoing amendments to the customs duty framework relevant to precious metals.
Customs Duty Increase on Precious Metals
In a recent update to India's customs regulations, the government has raised the customs duty on precious metal findings. Gold and silver will now incur a duty of 5%, while platinum is set at 5.4%. Additionally, the duty on catalysts has been increased to 4.35%. This decision aligns with earlier amendments made to notifications issued in 2018 and 2021, reflecting the government’s intention to stabilize revenue and control imports.
This amendment is significant as it modifies the existing tax structure, which has implications for manufacturers, traders, and consumers in the precious metals market. The government aims to ensure a fair tax regime while also promoting domestic production and investment.
Legal practitioners in the field should be aware of these changes as they will impact the import and procurement processes for various businesses involved in precious metals. Companies may need to reassess their import strategies and pricing to accommodate the new duty structure.
