The Jewellers Association on Friday welcomed the finance ministry’s decision to waive off the IGST on re-import of gems and jewellery dispatched to foreign nations for the purpose of being showcased in the global exhibitions and trade fairs. Earlier, the gem and jewellery being dispatched even for exhibition and consignment was attracting the IGST on their re-import.

Association President Sanjay Kala said, “The finance ministry’s indirect tax department on Thursday gave a big relief to gem & jewellery exporters by announcing that the jewellers shall not have to pay the IGST again on re-import of gems and jewellery which were sent to foreign nations to be showcased in international fairs and exhibitions.” “The jewellers association along with the Gem and Jewellery Export Promotion Council have been raising this issue with central government for quite a long time,” he said adding that “On behalf of Jewellery Association, I extend our gratitude to GJEPC chairman Pramod Agrawal and central commerce and finance ministries for taking this coveted initiative,” said Kala.

The exporters shall now be able to carry their gems and jewellery on the basis of delivery challan meant for approvals and can then adjust the delivery challan with the jewellery re-imported within six months of its issuing date. In last few months, the jewellers had reduced the quantity of gems and jewellery to be sent to foreign nations for exhibition/trade fairs due to levying of GST on returned goods which brought in quite a decline in export business. Now the decision taken by finance ministry is sure to boost our business, said Kala. He further said that the demand to bring down the GST on semiprecious stones is also being pending since long. “There is a strong need to bring down the GST on semiprecious stones from its current rate of 3% to make it equal to that of precious & diamond which is .25%,” he added. Also there is a need to bring semi-precious and precious stones under one single category which is colored stones, Kala said.

The Jewellers Association president also raised a demand to bring down import duty on colored gem stones used to manufacture jewellery from current 7.5% to 2% to ensure jewellers can beat the global competition which remains quite high in present times. If this initiative is implemented, the law will stand significant for smooth transportation of jewellery within the country which will help boost business for jewellery traders. We hope finance ministry will pay heed to these issues to ensure the business booms and so does the employment generation, he added.