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According to Budget 2025 documents, customs duty has been reduced from 25 per cent to 20 per cent on ‘articles of jewellery and parts thereof under tariff heading 7113’.
Budget 2025: Jewellery Prices To Drop.
Budget 2025: Finance Minister Nirmala Sitharaman has slashed the customs tariff for item code 7113, which includes jewellery and parts, from 25 per cent to 20 per cent. The lower duty will be applicable from February 2.
According to the Budget 2025 document, customs duty has been reduced from 25 per cent to 20 per cent on ‘articles of jewellery and parts thereof under tariff heading 7113; articles of goldsmiths’ or silversmiths’ wares and parts thereof under tariff heading 7114′.
Also, the finance minister also announced that the customs tariff on platinum findings has been slashed to 6.4 per cent, down from the previous 25 per cent.
The announcements are expected to make jewellery cheaper for consumers. For a country like India, renowned for its high jewellery consumption, this move is expected to drive increased demand in the domestic market.
The income tax relaxation for those earning up to Rs 12 lakh is further expected to boost the gold and silver demand in India.
Gold prices on Saturday were trading higher. The 22k gold rate stood at Rs 77,600 per 10 grams, while the 24 carat gold was at Rs 84,640. However, silver prices were flat at Rs 99,500 per kg.
Rajesh Rokde, chairman of All India Gem and Jewellery Domestic Council (GJC), said, “The reduction in personal income tax rates, along with the tax exemption limit raised to Rs 12 lakh, is a positive move that will significantly boost consumer spending and drive demand for jewellery. This increase in disposable income is expected to particularly benefit the gold and branded jewellery sectors.”
Additionally, the abolition of TDS and TCS on high-value transactions above Rs 50 lakh will streamline operations, ease compliance burdens, and bring more transactions into the formal, hallmarked market. These reforms will foster transparency, trust, and sustainable growth in the jewellery industry, he added.
Avinash Gupta, vice-chairman of GJC, said, “The reduction in personal income tax rates is a welcome move as it will enhance disposable income, leading to increased consumer spending, including in the jewellery sector.”
Additionally, the eradication of TDS and TCS on specific goods purchases and sales above Rs 50 lakh will significantly ease compliance burdens for jewellers and bullion dealers, fostering a more seamless and efficient business environment. These measures will collectively boost industry growth and strengthen consumer confidence, he added.
