GJEPC meets with Ministry of Commerce on IGST
today Jun 10, 2019
The Gem and Jewellery Export Promotion Council voiced its issues concerning IGST when it met with the Board of Trade and Council of Trade Development and Promotion in New Delhi on June 6.
The GJEPC issued a number of demands to the Ministry of Commerce bodies on Thursday at a meeting in the capital. One of the main issues the organisation raised was over the IGST (digital goods and services tax payments) now imposed on reimported jewellery consignments and diamonds exported through exhibitions, TNN reported.
IGST was recently applied to reimported jewellery and diamonds used in foreign exhibitions and on promotional tours and the GJEPC felt that this sudden imposition has harmed businesses in the industry.
“We are hopeful that the government will accept most of our demands,” said the GJPEC’s chairman Pramod Kumar Agarwal, as reported by TNN.
“Diamond exporters are facing several difficulties on account of office note issued on 4th May 2019 by Mumbai Customs regarding variation in dimension of cut and polished diamonds and variation in valuation of rough diamonds. As there are no standard global norms in valuation of rough diamonds and for examining dimension of polished diamonds, exporters are facing several difficulties.”
“We have sought relief from existing high import duty on key segments of the sector,” said Agarwal. “The industry has asked for a reduction in import duty on cut and polished diamonds and precious and semi-precious gemstones from 7.5 percent to 2.5 percent and on gold from 10 percent to four percent.”
The Union Minister for Commerce Piyush Goyal chaired the meeting which was also attended by other senior government officials. The meeting was a follow-up for one held earlier in January when the then Commerce Minister promised to bring the gems and jewellery sector under the 416 tariff of the three percent interest subversion scheme. This has not yet been carried out.
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