The Gem and Jewellery Export Promotion Council (GJEPC) on Friday said the recent GST reforms have provided a major relief to the diamond and jewellery industry. The government’s decision to exempt imports of natural cut and polished diamonds up to 25 cents from IGST (earlier 18%) under the Diamond Imprest Authorisation Scheme (DIAS) will reduce working capital requirements and aid producers and exporters engaged in processing of small diamonds.
Also, the reduction in GST rate on jewellery boxes from 12% to 5% will reduce costs for retailers and exporters. The move will also make packaging and gifting cheaper for consumers, benefiting both trade and customers.
GJEPC Chairman Kirit Bhanushali said, “These measures will stimulate domestic demand and provide a cushion to our export supply chains, which are under pressure due to global challenges.” He also said that the sector will ensure that reliefs such as reduction in cost of jewellery boxes are passed on to Indian consumers in a transparent manner to build trust and promote long-term growth.
These measures along with reduction in GST rates in allied sectors such as handicrafts, leather products and packaging will further strengthen India’s diamond and jewellery industry. With reduced costs, increased accessibility of products and improved global competitiveness, India’s position in diamond processing, jewellery designing and exports will be strengthened.
Also Read: Swearing-In Ceremony: C.P Radhakrishnan Set To Take Oath On Sept 12: Reports
