Surat jewellers get custom duty relief:Govt cuts import rates by 1% for SMEs buying gold from International Bullion Exchange

Tue Oct 14 2025

Amidst continuously rising gold prices, good news has emerged for the jewelry industry. The Directorate General of Foreign Trade (DGFT) has issued an important circular for jewelers, which includes major amendments to the net worth related conditions for purchasing gold from the India International Bullion Exchange (IIBX).

This change will provide relief in 1% customs duty to about 150 jewelers in Surat, which will directly impact regular customers who purchase jewelry. Net worth limit reduced from ₹25 crores to ₹15 crores

Previously, jewelers needed a minimum net worth of ₹25 crores to purchase gold from IIBX and they had to be doing about 90% of bullion-gold selling business.  However, according to the new circular, this net worth limit has now been reduced to just 15 crores. Gujarat-IBJA President Nainesh Pachchigar stated that this decision could be very beneficial for the industry.

Currently, there are only 12 to 15 jewelers in Surat who purchase gold from IIBX, but with the net worth limit becoming ₹15 crores, this number could increase to 100 to 150.

Biggest benefit of 1% rebate

Jewelers get a 1% rebate in import duty when purchasing gold through IIBX, which is the biggest financial benefit for them. The main objective of the changes made to rules by DGFT is to encourage more jewelers to purchase gold through IIBX.

According to new rules, licensed jewelers buying gold from IIBX should be doing 50% to 60% bullion work. With the reduction in net worth limits, small and medium-sized jewelers will now get more opportunities to join transparent processes like IIBX.

Increased transparency and customer trust

Buying gold directly from the government will increase transparency in trade and also increase customer trust in jewelers. While gold prices are continuously increasing, this new DGFT circular will be considered very important for encouraging the industry and providing price relief to customers.

There is now full potential for an increase in the number of licensed jewelers working with bullion.

Source: https://www.bhaskarenglish.in/