Government wavers IGST on gold jewellery carried outside of India for exhibitions

By

Isabelle Crossley

Published
Jul 22, 2019

The government’s Ministry of Finance has decided to lift online goods and services tax payments on jewellery carried outside of India for exhibitions, a move that has been welcomed by the jewellery industry.

Jewellery transported out of India by businesses taking part in international trade shows and exhibitions was previously charged IGST when it was brought back to India. The government has now lifted this levy following a number of pleas from industry bodies, ET Bureau reported.

The Ministry of Finance has clarified that taking jewellery in and out of India to promote exports does not constitute “supply” and therefore does not fall under Section 7 of the CGST Act. The activity also does not constitute “Zero Rated Supply” under Section 16 of the IGST Act which confirms that no IGST need be charged, the Ministry of Finance said.

“We appreciate and welcome this industry friendly step taken by the government,” said the Gem and Jewellery Export Promotion Council’s chairman Pramod Kumar Agarwal in a statement, as reported by ET Bureau.

“As the apex body of the industry, while making representations we have not left any stone unturned in our genuine effort towards resolving this issue. The move will definitely provide respite to our member exporters.”