All India Gem & Jewellery Domestic Council (GJC), the apex body of gems and jewellery industry, has sought to reduce the GST rate on jewellery to 1.25 per cent from 3 per cent in the upcoming budget.

GJC has also urged the Finance Minister to raise the PAN card limit from Rs 2 lakh to Rs 5 lakh, citing that many households in rural India do not hold PAN cards and face difficulty in arranging minimum required jewellery in times of need, especially post pandemic.

The Council said that post the impact of Covid’s first and second wave in 2020 and 2021, respectively, the gems and jewellery industry was on the recovery route. However, the fear of the new variant, Omicron, looms large and there are talks of restrictions and additional curbs.

GJC has urged the government that suitable clarification be issued on the minimum quantity of gold which an individual can deposit under the Gold Monetization Scheme (GMS), without being questioned by any departmental authorities.

GJC has also requested that the EMI facility for purchase of 22K gold jewellery be allowed, which, in turn, shall lead to substantial growth of the business.

Ashish Pethe, Chairman GJC, said, “Our industry has suffered a lot during these harsh times of the pandemic, and it is also identified as one of the ‘stressed sectors’ in Mr. K V Kamath’s report. Hence, GJC has proposed changes in Section 40A of the Income Tax Act so that the existing daily cash limit of Rs 10,000 per day be increased to Rs 1 lakh per day. GJC has also urged the government to waive off the bank commission (1-1.5%) on purchase of jewellery through credit cards."