Budget 2022 Expectations: Reduction in Import Duty, GST On Jewellery Among Key Demands

The integral jewellery industry body -the Gem and Jewellery Export Promotion Council (GJEPC) expects the Finance ministry to address the following issues faced as a whole by the industry.

Budget 2022 Expectations: Reduction in Import Duty, GST On Jewellery Among Key Demands

1. Reduction in import duty on precious metals including gold, silver and platinum from 7.5% to 4%.

2. The body also urges the government to reduce import duty on cut as well as polished diamonds from
7.5 per cent to 2.5 per cent. Also the body demands permission for sale of rough diamonds in the 'Special Notified Zone' in Mumbai. As of now, only viewing of rough diamonds is permitted in the zone and not its sale.

3. Other than this the Gem and Jewellery Council (GJC), the apex body has sought to lower the GST rate on jewellery from the current 3% to 1.25%.

4. PAN card limit for purchasing gold to be increased from Rs. 2 lakh to Rs. 5 lakh. This is sought on the ground that many families in rural India do not have PAN and hence confront difficulty.

5. Further the organisation intends that the centre provide clear clarification with regard to the minimum gold quantity an individual can deposit under the GMS or gold monetisation scheme. Also in view of the downfall the industry faced amid the Covid outbreak, GJC demands the facility of EMI for purchasing 22K gold.

6. Additionally, the body is of the view and asks the centre that in case the jewellery is sold and then the proceeds are reinvested in new jewellery then the exemption from Capital Gain as per Section 54F of the Income Tax Act 1961 should be extended to gems & jewellery Industry. This will help the industry to move towards organized and compliant business practices, said GJC.

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