The government on Monday slashed the import tariff value of gold to $421 per ten grams and that of imported silver to $709 per kg, considering the falling trend in global prices.
Tariff value is the base price on which the customs duty is determined to prevent under-invoicing.
Last month, the tariff value of gold was at $459 per 10 grams and silver at $737 per kg.
The notification in this regard has been issued by the Central Board of Excise and Customs (CBEC).
Government has reduced the import tariff value of gold as global prices in Singapore have been volatile in the last few days. Global prices today fell by 1.4% to $1,278.94 an ounce and silver by 2.8% to $19.55 an ounce. A similar trend was seen in silver rates as well.
India's gold import in the second quarter of the current fiscal is expected to more than halve to 150 tonnes, as against around 350 tonnes in the April-June period of the 2013-14 fiscal, as per the Bombay Bullion Association.
Gold in the national Capital is costing around Rs 27,320 per 10 grams, while silver at Rs 42,500 per kg.
Besides precious metals, the government has hiked the import tariff value of RBD palmolein to $869 per tonne, as against $854 per tonne. The tariff value of other varieties of edible oil have been kept unchanged.