India raises import duty on precious metal scrap, ash to 10%

The Central government has increased customs duty on several categories of precious metal-bearing imports, including spent catalyst and ash containing precious metals, as part of its continued efforts to tighten control over non-essential imports.

In a notification issued by the Ministry of Finance, the Department of Revenue revised the import duty structure under the Customs Act and Customs Tariff Act. The revised notification increases customs duty from 5% to 10% on multiple tariff lines related to precious metal waste and scrap categories.

The notification also introduced a new entry covering “spent catalyst or ash containing precious metals,” which will attract 10% customs duty. The provision will remain applicable until March 31, 2027.

Additionally, the government revised duty rates on various goods classified under tariff headings linked to precious metal-bearing materials and industrial scrap imports.

The latest policy move comes shortly after Prime Minister Narendra Modi called on citizens to reduce avoidable spending on gold and refrain from unnecessary gold purchases for a year. During his recent address, the Prime Minister highlighted the need for economic discipline, lower import dependence and prudent consumption amid global uncertainties and rising geopolitical tensions.

The comments had sparked volatility in jewellery and gold-related stocks earlier this week, with shares of companies such as Titan, Kalyan Jewellers, Senco Gold and Thangamayil Jewellery witnessing sharp declines as investors assessed the possible impact on consumer demand.

Analysts believe the government’s latest customs duty revision is aimed at discouraging excessive imports of precious metals and related materials, especially at a time when global gold prices remain elevated. India imports a substantial portion of its gold requirement, and higher imports typically put pressure on the country’s current account deficit.

The government has frequently used customs duties as a policy instrument to regulate gold inflows and support macroeconomic stability. Market participants will now closely monitor whether the revised duty structure has any meaningful impact on import trends or domestic pricing dynamics in the coming quarters.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.