The Gemstone and Jewellery Industry is pushing for the Goods and Services Tax (GST) rate to be reduced to 1 per cent in the upcoming budget. Industry leaders say the current GST rate is a financial burden that is hampering competitiveness and job creation.

Industry calls for tax rationalisation.

Rajesh Rokde, chairman of the All India Gem and Jewellery Council (GJC), said there is a need to rationalise taxes and improve access to finance.

Implications of high gold prices

As gold prices are on the rise, Rokde pointed out that the current GST rate is an increasing burden on the industry and consumers. The GJC is urging the government to reduce the GST from 3 per cent to 1 per cent to promote compliance.

Benefits of GST Reduction

The tax reduction would improve affordability for consumers, especially in rural areas, and is expected to improve revenue collection by expanding the formal economy.

Preferential GST Rate for Synthetic Diamonds

The GJC has also called for a preferential GST rate for lab-grown diamonds to recognize their sustainable attributes, as they are currently taxed at the same rate as natural diamonds.

Proposal for a Dedicated Ministry

The GJC also wants a dedicated ministry for the jewellery sector, as well as nodal offices at the state level and the appointment of a central minister.

Revitalisation of EMI and Gold Monetisation Scheme

Avinash Gupta, Vice President of GJC, called for the introduction of an EMI scheme for jewellery and a revival of the gold monetisation scheme to mobilise unused gold of households, thereby promoting self-reliance.

Finance Minister Nirmala Sitharaman will present the Union Budget 2025 on Saturday, February 1, 2025, at 11:00 a.m. IST.

Image Source: The Economic Times