Story Highlight
– GST reforms benefit diamond and jewellery sectors significantly.
– IGST on small diamond imports exempted, aiding exporters.
– Jewellery box GST reduced from 12% to 5%.
– Lower costs encourage domestic demand and consumer trust.
– Reforms enhance India’s global competitiveness in jewellery industry.
Full Story
**GST Reforms Enhance Prospects for India’s Diamond and Jewellery Sector**
The Gem and Jewellery Export Promotion Council (GJEPC) has revealed that recent reforms in Goods and Services Tax (GST) regulations are set to substantially benefit the diamond and jewellery industry. A key measure includes the exemption of imports of natural, cut, and polished diamonds weighing up to 25 cents from the Integrated Goods and Services Tax (IGST), which was previously imposed at 18%. This change, under the Diamond Imprest Authorisation Scheme (DIAS), is anticipated to ease working capital burdens for businesses dealing with smaller diamonds.
Moreover, the reduction of the GST rate on jewellery boxes from 12% to 5% is expected to decrease expenses for retailers and exporters. This adjustment is not only likely to lower costs for businesses but also make packaging and gifting more affordable for consumers, thereby boosting trade and enhancing customer experiences.
Kirit Bhanushali, Chairman of GJEPC, remarked, “These initiatives will boost domestic demand and provide support to our export supply chains, which are currently facing challenges due to global circumstances.” He assured that the industry would ensure that the savings from the reduced costs of jewellery boxes are passed on to Indian consumers, fostering trust and promoting sustainable growth.
Furthermore, these regulatory changes, which also extend to related sectors such as handicrafts and leather goods, are expected to further strengthen India’s diamond and jewellery market. The anticipated reductions in costs and improved accessibility are set to enhance India’s global competitive edge in diamond processing, jewellery design, and exports, positioning the country favourably within the international marketplace.