Gold jewellery exports reducing due to 3% GST, says GJEPC

By

Maverick Martins

Published
Jul 4, 2018

Gem and Jewellery Export Promotion Council (GJEPC), a body representing over 6000 jewellery exporters has said that exports are on the decline due to the 3 percent GST.
 

GJEPC has urged the government to look into the matter and reduce the 3 percent GST on gold procurement to boost exports from the country.
 
“The sector is a USD 41 billion export industry and it contributes 7 percent to the country's economic growth and 15 percent to exports. The 3 percent Goods and Services Tax (GST) on exporters for procuring gold from nominated agencies is hampering jewellery exports from India," the GJEPC Chairman Pramod Agrawal said in a statement.

"Government has given relief to nominated agencies for not paying IGST upfront on gold import on submission of bond. But there is still implication of 3 percent GST on the exporter for procuring gold from nominated agencies which from time to time the council has represented to government. This is hampering gold jewellery exports from India," Agrawal added.
 
The total jewellery exports in the period from April 2017 to January 2018 had fallen by 8.55 percent to 177,242 crore rupees (approx $26.6 billion) from the same time period a year earlier when the total reached 193,898 crore rupees.