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Informist, Wednesday, Jan. 8, 2025

 

MUMBAI – The All India Gem and Jewellery Domestic Council has urged a reduction in the goods and services tax on gems and jewellery to 1% from 3% to ease the cost burden on the industry and eventually consumers, the council said in a release. The gems and jewellery sector is a major job creator and is India's second-largest foreign exchange earner. However, the industry faces numerous challenges such as complex taxation, stringent compliance requirements, and limited access to finance, the release said.

 

"We work tirelessly for the overall growth and betterment of the industry. We, therefore, seek rationalisation of taxes and availability of finance to support business," said Rajesh Rokde, chairman of the All India Gem And Jewellery Domestic Council. "With the continuously increasing gold rates, the current rate of GST is becoming increasingly burdensome for the industry and end customers. Hence, we humbly request a reduction in GST, which will encourage compliance. Additionally, the tax reduction will enhance affordability for consumers, especially in rural areas, and most importantly, improve revenue collection by increasing the size of the formal economy," Rokde added.

 

There is also an urgent need to introduce a concessional GST rate for lab-grown diamonds to recognise their sustainable and cost-effective attributes compared to natural diamonds, the release said. Both natural and lab-grown diamonds are currently taxed at the same GST rate. The council also urged the government to establish state-wise nodal offices and appoint a central minister for the jewellery sector, the release said.

 

"We request the government to consider the EMI on jewellery, which has been a long-standing demand of the industry," said Avinash Gupta, vice-chairman of the All India Gem and Jewellery Domestic Council. "Gold Monetisation Scheme also needs a revamp as it has the potential to unearth the idle household gold in the economy and thus helping us to be self-reliant and promote less imports. As an apex body of the gems and jewellery industry, GJC (All India Gem and Jewellery Domestic Council) has the detailed roadmap for successful implementation of GMS (Gold Monetisation Scheme), and we can assist the government in implementing it across the nation," Gupta said.

 

The jewellery sector in India is mostly made up of small and medium enterprises, including family-owned jewellers, with approximately two-thirds of the overall industry business driven by them, the release said.  End

 

Reported by Ashutosh Pati

Edited by Namrata Rao

 

 

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