Page 16 - Bullion World Volume 5 Issue 06 June 2025

Bullion World | Volume 5 | Issue 06 | June 2025
India Introduces Distinct HSN Codes

for Gold, Silver and Platinum Against

its Different Purities and Forms Under

Chapter 71: Effective May 1, 2025

Mr Prem Nath, Director – FinMet India Pvt. Ltd

Background:
The precious metals industry, along with the Directorate General
of Foreign Trade (DGFT) and Customs, has long faced challenges
in distinguishing between different forms and purities of gold,
silver, and platinum. This ambiguity has stemmed from the use of
common HSN codes, which hindered accurate data dissemination,
customs appraisals, and policy formulation.

• For example, HSN Code 71081200 previously covered both:
• Refined gold containing 99.50% and above by weight of gold,
and
• Gold Dore bars containing 95% or less by weight of gold.

This overlap created difficulties in distinguishing between refined
gold and gold Dore bars, which are governed by entirely different
import policies.
Mr Prem Nath
• Refined gold (≥99.50%) was permitted under HSN Code
71081200 and could be imported through:
• Nominated Agencies authorized by the RBI (for banks),
• DGFT (for trading companies), or
• IFSCA (for Qualified Jewellers/TRQ holders via IIBX at IFSC
Gift City).

Gold Dore (< 95% gold content), although classified under the same code (71081200), was restricted and
allowed only to actual users (refiners) against a valid license, subject to conditions such as:

• Minimum weight of each Dore bar (≥5 kg), Compliance with IGCRS rules, etc.
• Similar overlaps and challenges existed for silver and platinum products under their respective HSN codes,
despite differing in form, purity, and associated import policies.

Resolution:
To address these inconsistencies, the Finance Bill 2025 of the Union Budget for FY 2025–26
(announced on February 1, 2025) introduced revised and more granular HSN codes under
Chapter 71, effective May 1, 2025, as detailed below:

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