Exemption of AIDC on Gold and Silver Bars and Dore to boost Jewellery Exports. The Finance Ministry has issued a notification dated 17th February 2021, of the amendments made to the finance bill 2021 as regards to the Agriculture Infrastructure and Growth Cess (AIDC) exemption on gold/Silver bars and dore for exporters. However, it maintains that the gold/silver bars and dore imported for home use will appeal to AIDC.
Within the Finance Bill, 2021, Agriculture Infrastructure and Growth Cess (AIDC) of two.5% was levied on import of Gold/Silver Bars and Dore.
Colin Shah, Chairman, GJEPC mentioned, “Exemption of AIDC on Gold/Silver Bars and Dore is a grasp stroke by Govt. which might have optimistic implications on the expansion of the gem and jewelry export sector. This has come as a a lot aid to our exporting neighborhood. This cost of cess made the jewelry exports unviable and uneconomical, because the cess just isn’t part of import obligation. Jewelleries are offered on Worldwide pricing of gold and this extra cess hampers the export & development of the business. On behalf of the whole gem and jewelry export sector, I categorical my deepest gratitude to Smt. Nirmala Sitharaman, Hon’ble Minister of Finance for contemplating our pleas to exempt AIDC on Gold/Silver Bars and dore for exporters.” added Colin Shah
As an advocate to the Gems & Jewelry fraternity, Council represented the problems to the Ministries of Finance and Commerce, to waive off the relevant cess cost on import of Gold/Silver Dore and Bars for exports beneath the assorted export promotional schemes.
On 17th February 2021, Finance Ministry, by a notification no. 18/2021- Customs dated, 2021 Division of Revenue together with Notification no. 56/2000- Customs and 57/2000- Customs introduced the exemption of AIDC on import of Gold/Silver Bars and Dore for exporters.
The Indian gem and jewellery business expects a serious transformation after two landmark announcement made by the Authorities just lately. One is the import obligation on treasured metals like Gold and Silver was diminished from 12.5 p.c to 7.5 p.c. Additionally, final week authorities made collection of amendments to the Gold Monetisation Scheme (GMS) and have given entry to home gold to return within the system by empowering banks, giant jewelry shops as BIS licensed gold assortment centres.
