Gems and Jewellery Industry Seeks GST Relief in Upcoming Budget

The gems and jewellery sector is urging the government to reduce GST to 1% to alleviate cost burdens. The All India Gem and Jewellery Domestic Council emphasizes tax rationalization and finance availability to support businesses. They are also advocating for dedicated ministry and state-wise nodal offices.

The gems and jewellery sector is calling on the government to slash the goods and services tax (GST) to 1% on revenue equivalence ratio, aiming to alleviate the cost burden faced by the industry with the upcoming Budget. Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council (GJC), is advocating for tax rationalization and increased finance accessibility to bolster business operations.

As gold prices surge, the existing GST rate of 3% is becoming increasingly burdensome for the industry and consumers alike. Rokde argues that a reduction to 1% GST would not only make jewellery more affordable for rural consumers but could also enhance revenue collection by expanding the formal economy.

The GJC also highlights the necessity to introduce a concessional GST rate specifically for lab-grown diamonds, recognizing their sustainable and cost-effective nature compared to natural diamonds. Furthermore, GJC is urging the establishment of a dedicated ministry and the appointment of state-wise nodal offices and a central minister dedicated to the jewellery sector. GJC Vice-Chairman Avinash Gupta underscores the importance of considering long-standing demands, such as EMI on jewellery and revamping the Gold Monetisation Scheme, to unearth idle household gold and reduce imports.

(With inputs from agencies.)