Indian jewellers demand cut in export duty to boost trade

By

Maverick Martins

Published
Jan 15, 2018

Indian gems and jewellery sector has sought relief from the government as high taxation coupled with declining sales is taking a toll on the jewellery industry.
 

The industry has asked the government to take the demands of jewellers across the country into consideration and lower the tax rate to 4 percent in the next budget session. Currently, the import duty on gold is 10 percent.
 
The jewellery industry also feels that the reduction in tax rate will not only boost sales but also help them get organised thereby reducing irregularities in the sector. It has further requested the government to increase the invoice value to Rs 2 lacs and cash purchase to Rs 1 lac.

Post the implementation of GST, to keep a check on the illegalities and black money the government had imposed restrictions on jewellery purchases.
 
"Lowering the duty to 4 per cent from 10 per cent will not only boost customer demand and uplift business sentiment for the trade, but also help industry become more organised and compliant," All India Gems and Jewellery Trade Federation (GJF) chairman Nitin Khandelwal wrote in his letter to the Finance Ministry.
 
“The reduction in import duty will also help in the fight against black money. There are some issues under the current GST regime, which is hampering the industry that the government needs to look into,” he added.
 
"Retail customers are reluctant to share their residence address, so we request the government to increase the invoice value to a minimum of 2, 00,000 from the current Rs 50,000. We also want the government to increase the cash purchase limit to at least Rs 1, 00,000, which is kept at Rs 10, 000," he further added.
 
All India Gems & Jewellery Trade Federation is a national trade federation for the promotion and growth of trade in gems and jewellery across India.