Excise duty on branded gold coins removed

The Indian government has announced removal of the 1 percent excise duty on branded gold coins of 99.5 percent purity and above, as per a notification by the Central Board of Excise and Customs (CBEC), reports say. The gold in these coins is to be one on which the required customs/excise duty has been paid.

The excise duty on gold coins was levied in 2011 as per reports. Some industry players view this as a good move to encourage organised retail within the Indian industry which by nature is largely unorganized. Also, the rule does not apply to the articles of goldsmiths’/ silversmiths’ wares of precious metal or of a metal clad enveloped in precious metal and bearing a brand name. Such items will be levied a 1 percent excise duty.

The excise duty on branded silver coins is exempted.