Mumbai: The gems and jewellery industry is expecting the government to sort out few issues, including 3 per cent GST on gold import for export purpose, to give a boost to the industry as the new tax regime completes one year of rollout.
“Overall, GST has been good for the gems and jewellery export industry, even as there were some teething problems in the initial period,” the Gem and Jewellery Export Promotion Council (GJEPC) vice chairman Colin Shah told PTI. “However, things have settled down after that. Earlier, we had to pay Octrai, VAT and customs duties, not we just have GST, which is simple and presents less of paper work,” he added. He said things are now better for the diamond sector with the 0.25 per cent GST. The only issue is with the import of gold for export purpose, he said.
“The process is a bit cumbersome where the banks are charging us three per cent GST, for which we are getting reimbursement through input credit. But to make things easier, we are want it to be GST free. So far the government has been supportive and have resolved all our issues,” Shah said. World Gold Council Managing Director, India, Somasundaram PR said GST is a major fiscal reform since India’s liberalisation in the early 1990s.
“While gold consumers will face a slightly higher tax rate, and the industry is going through a period of adjustment, we see the net impact on the gold industry as being positive. We expect GST to accelerate the process of making India’s gold market more organised and transparent, which should be good for consumers.” This will support gold demand in the years to come, he said.
All India Gems And Jewellery Domestic Council Chairman Nitin Khandelwal opined that GST has been a boon for the industry as it has to pay only one tax. India Bullion and Jewellers Association (IBJA) Director and Chairman and Managing Director of PNG Jewellers Saurabh Gadgil said, “There are still many issues which will be sorted by the government over time, including too many slabs. We need to rationalise them.”