Mumbai : All India Gems and Jewellery Trade Federation (GJF), the national body of the gems and jewellery industry, presented a set of recommendations to the Goods and Services Tax (GST) Council recently. The body believes that the industry will suffer in the long run, if the Government does not ensure that the cumulative incidence of GST is below 1.25 per cent and if one standard HSN code (up to 4 digit) is not maintained in the industry, among various other recommendations.
The body has sent a list of recommendations to the GST Council and is hoping to hear from the council in 10-15 days, stated Ashok Minawala, past chairman and high-level committee member, GJF. He stated, “There are two aspects in the recommendation — rate and rules. This is critical for the future of the industry, post implementation of GST.”
He also pointed out that the sector had recently seen a change in rates when Central Excise introduced a new rate of 1 per cent. He stated the rate of Central Excise was consciously kept at 1 per cent considering the high value of goods involved in the sector and also to encourage tax compliance. These rules were implemented only after a high-level committee looked into them. So, he believes the Council cannot disregard it. Minawala stated that the body has made a representation to 20 finance ministers of various states who are members of the GST council on the same. “We have explained the issue to them and informed them that they will receive sufficient revenue even with 1 per cent rate,” he added. The body is hoping the council allows them to present their side about GST.
The body has also recommended that the definition for job work in Articles of Jewellery (Collection of Duty) Rules, 2016 should be considered while defining the term job work in the GST legislation to recognise the job work practices of the gems and jewellery sector. Minawala believes that 30-member GST council should consider this as a dire need for the unorganised sector.