The gems and jewellery industry has welcomed the GST 2.0 reforms, with the All India Gem and Jewellery Domestic Council (GJC) stating that the measures could improve compliance, reduce litigation and provide greater certainty for businesses.

GJC Chairman Rajesh Rokde said the reforms would strengthen trust, transparency and efficiency in the sector, while supporting ease of doing business. He said the changes could help small and medium-sized traders operate with greater confidence, while ensuring that genuine tax evasion cases are addressed.

Among the key measures highlighted by the council is the increase in the threshold for arrest-related action from Rs 1 crore to Rs 5 crore, along with a requirement for approval from a higher authority before an arrest. Rokde said the changes could reduce concerns around unnecessary harassment and improve accountability and due process.

The council also welcomed the proposed predictability in GST rate changes, under which revised rates would generally take effect from April 1 rather than during the financial year. This, Rokde said, would help businesses plan pricing, inventory, accounting and compliance more efficiently.

Other measures cited include smoother movement of goods in transit, faster automated refunds to support cash flow, changes to penalty provisions and recognition of input tax credit for employee insurance. The council said these steps could reduce operational disruption and compliance-related uncertainty for jewellery businesses.

The GST Council has also withdrawn the IGST exemption on gold, silver and platinum imports by banks and nominated agencies, with these imports attracting 3% IGST from April 1, 2026.

Rokde said the broader reforms could strengthen industry credibility, safeguard livelihoods and support sustainable development across the gems and jewellery sector.