24-09-2019
India announced reduction in the goods and service tax (GST) on semi-precious gemstones and work related to diamonds last Friday. The measures are welcomed by the Indian gem and jewellery industry.
India’s finance minister Nirmala Sitharaman said on 20 September that GST rate on cut and polished semi-precious stones has been reduced from three percent to 0.25 percent. Reduction in GST from five percent to 1.5 percent on supply of job work services in relation to diamonds.
The industry will also be benefited from other overall measures announced by the minister such as reduction in corporate tax to 25 percent, tax rate of 15 percent for new manufacturing units, and enhancement of export credit limit to Rs 40 crore (approximately US$5.7 million) from the earlier Rs. 25 crore (approx. US$3.6 million).
Expressing gratitude on behalf of the industry, chairman of The Gem and Jewellery Export Promotion Council (GJEPC) Pramod Kumar Agrawal said last Saturday: “The measures announced yesterday will enhance Ease of Doing business, boost exports and make India more competitive with respect to neighbouring countries and attractive as an investment destination.”
He added that the stimulus will bring cheer to the trade constituents and industry on the eve of the festival season.
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