Industry's Demand for Tax Relief

The industry, represented by various trade bodies, has emphasized that a lower GST rate would provide a much-needed boost to jewellery manufacturers, retailers, and exporters. With high taxation affecting domestic sales and global trade, the industry believes a reduction to 1% on revenue equivalence ratio  would spur demand and encourage more compliance within the sector. "We seek rationalisation of taxes and availability of finance to support business," the All India Gem and Jewellery Domestic Council (GJC) Chairman Rajesh Rokde said in a statement on Tuesday.

Challenges of the Existing GST Regime

Currently, the gems and jewellery sector faces multiple tax slabs, leading to increased operational costs and administrative complexities. The industry has pointed out that a streamlined tax structure would enhance transparency, curb illicit trade, and promote legitimate transactions.

Strengthening India's Jewellery Market

India is one of the largest players in the global jewellery market. A tax reduction could significantly enhance the country’s ability to attract international buyers while making high-end jewellery more accessible to domestic consumers. Industry leaders believe this move would further strengthen India’s position as a jewellery manufacturing hub.

Awaiting Government Response

With the Union Budget approaching, stakeholders are hopeful that the government will address their concerns and implement a more favourable tax policy that benefits both businesses and consumers.