Jewellery exporters get 3 percent IGST exemption
today Jan 3, 2019
The gems and jewellery sector can breathe a sigh of relief as the government has scrapped the three percent Integrated Goods and Services Tax (IGST).
With the exemption, gem and jewellery exporters will no longer have to pay the 3 percent IGST to banks on the supply of gold from January 1, 2019. The three percent tax on exporters for procuring gold from nominated agencies was hampering jewellery exports from India which had plummeted by 9 percent post the implementation of the tax.
The Gem & Jewellery Export Promotion Council’s (GJEPC’s) has hailed the decision of the government as it feels that the withdrawal of the additional tax will boost business and compete in the global markets.
Pramod Kumar Agrawal, chairman, GJEPC, in a statement said, “We commend this step undertaken by the government. We are also expecting a similar relief from the government to the exporters of articles of silver & platinum very soon.”
“The upfront payment of IGST and import duty in the form of bank guarantee had further led to the huge working capital blockage for various small and medium jewellery exporters, increased interest cost, hassles of compliance to claim refund thus consequently impacting their business operations and global competitiveness,” Agarwal added.
The government is also working on an integrated gold policy to further boost jewellery exports and the industry at large.
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