GJEPC believes new GST policy will boost jewellery industry

By

Isabelle Crossley

Published
Sep 23, 2019

The Gem and Jewellery Export Promotion Council voiced its support for the Goods and Services Tax Council’s policy decisions relating to the micro, small, and medium business sector and stated that they will give a boost to the jewellery industry. 

The GJEPC praised the Minister of Finance following her GST policy announcements at the 37th GST Council meeting in Goa. The GJEPC announced on its website that many of the new measures are in line with its own suggestions and that they will give a boost to the jewellery industry.

“The measures announced yesterday will enhance Ease of Doing business, boost exports and make India more competitive with respect to neighbouring countries and attractive as an investment destination,” said the GJEPC’s chairman Pramod Kumar Agrawal on Saturday, the GJEPC reported on its website. 

Measures highlighted by the GJEPC as particularly beneficial to the jewellery industry include the exemption from GST/ IGST of silver and platinum supplied by specified nominated agencies for export purposes. Diamond India Limited has also been included as a listed nominated agency eligible for IGST exemption on imports of gold, silver, and platinum to allow it to supply the precious metals to smaller jewellery businesses at nil GST.

The GST on cut and polished semi-precious stones has been reduced from 3% to 0.25% through a reduction in the accumulation of Input Tax Credit. The GST on supply of job work services for diamonds has been reduced from 5% to 1.5%.

“The stimulus will bring cheer to the trade constituents and industry on the eve of the festival season,” said Agarwal. “It is the right signal to send to the world especially on the eve of Hon. Prime Minister’s visit to the US, which is the biggest export market for the gem and jewellery industry.”