New Delhi:
The gems and jewelery industry has demanded from the government to reduce GST in the upcoming budget. All India Gems and Jewelery Domestic Council (GJC) has said that the existing 3% GST should be reduced to 1%, so that the burden on the industry and customers can be reduced.

Why is there a demand to reduce GST?

GJC Chairman Rajesh Rokade says that due to rising prices of gold, the current GST rate is proving to be burdensome for the industry and customers, especially in rural areas. He believes that by reducing taxes, consumers will be more capable of purchasing and compliance will increase.

Urge to implement concessional GST rate for lab grown diamonds

GJC has also suggested that there should be different GST rates on natural and lab-grown diamonds. This will help in identifying the durable and economical properties of lab-grown diamonds. Currently, the same GST rate is applicable on both natural and lab grown diamonds. The body said there is a need to implement concessional GST rate for lab-grown diamonds.

Demand for special ministry

The Gems and Jewelery Domestic Council has also requested to appoint a dedicated ministry, state-wise nodal office, and a Union Minister for the jewelery industry.

Need for improvement in EMI and gold monetization scheme

GJC Vice Chairman Avinash Gupta said, “We request the government to consider introducing EMI facility for purchase of jewelery which is a long standing demand of the industry. “Also, the gold monetization scheme also needs to be reformed as it has the potential to bring out idle domestic gold in the economy and thus help us become self-reliant and import less.”