The Gem & Jewellery Export Promotion Council (GJEPC) submitted a comprehensive set of pre-budget proposals to the Government of India, aimed at enhancing ease of doing business and accelerating export growth across the gems and jewellery sector. The delegation included Kirit Bhansali, Chairman, GJEPC; Anoop Mehta, Convener – Diamond Panel; K. Srinivasan, Convener – Gold Panel; and Sabyasachi Ray, Executive Director.

Among the key recommendations, the Council called for a liberalised taxation framework for rough diamond trading in Special Notified Zones, aligned with international trading hubs such as Israel, Dubai, and Belgium. It further sought an extension of the customs duty exemption on lab-grown diamond seeds beyond March 2026 to support the country’s rapidly expanding LGD ecosystem.

The GJEPC also proposed retrospective applicability (2014–2025) of the ±0.01 mm height variance parameter for re-imported diamonds returned after certification and grading, to prevent undue duty disputes. Additional requests included shifting to an ad-valorem duty drawback structure for gold and silver to reflect rising global prices, and the inclusion of platinum jewellery and gold articles under the drawback scheme.

To encourage foreign tourist purchases, the Council suggested a comprehensive tax refund mechanism covering GST, Basic Customs Duty, and AIDC, supported by digital infrastructure and refund counter setups at airports. For SEZs, GJEPC recommended operational flexibility through reverse job work, domestic sales against duty payment, and “Bill to, Ship to” procurement norms to streamline supply chain movement.

Further proposals included reducing import duty on cut and polished diamonds and coloured gemstones from 5% to 2.5%, abolishing duty on rough gemstones, and revising personal carriage limits for overseas exhibitions and business trips.

Highlighting the industry’s narrow operating margins, GJEPC appealed for relief from penalties under Section 271G relating to transfer pricing documentation, referencing judicial precedents that acknowledge the sector’s practical compliance environment.