Story Highlight
– 3% GST on gems and jewellery remains unchanged.
– Industry stakeholders support government’s decision.
– Broader GST changes expected to boost consumption.
– Increased consumer spending may enhance market growth.
– Jewellery seen as an investment for new consumers.
Full Story
The recent decision by the government to retain a 3% Goods and Services Tax (GST) on gems and jewellery has garnered backing from industry leaders, despite a lack of direct reforms for the sector. The anticipated adjustments to GST regulations are expected to enhance consumer spending, which may, in turn, provide indirect advantages to the gems and jewellery market in the long run.
Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council (GJC), expressed a positive outlook, stating that although the current reforms do not address immediate challenges such as rising input costs and regulatory compliance, they are likely to stimulate increased consumer expenditure in various sectors, which could lead to a boost in the marketplace.
Meanwhile, GJC Vice Chairman Avinash Gupta commented on the influence of the new GST on consumer disposable income, forecasting a rise in aspirational purchases and upgrades in lifestyle choices. This evolving landscape allows consumers to regard jewellery as a viable investment, indicating a promising increase in demand, particularly among emerging demographic groups.