The apex body of gems and jewellery industry, All India Gem and Jewellery Domestic Council (GJC) has urged the Finance Ministry to reduce the Goods and Services tax (GST) rate in the budget 2022.
It has requested to cut GST rate from 3 percent (prevailing currently) to 1.5 Percent and a cumulative GST rate of 1.25%, based on Revenue Equivalence Principle on gold, precious metals, gems, and articles of jewellery made of such goods.
Further, GCJ chairman Ashish Pethe has said, “Our industry has suffered a lot during these harsh times of the pandemic, and it is also identified as one of the ‘stressed sectors’ in Mr. K V Kamath’s report. Hence, GJC has proposed changes in Section 40A of the Income Tax Act so that the existing daily cash limit of Rs 10,000 per day be increased to Rs 1 lakh per day. GJC has also urged the government to waive off the bank commission (1-1.5%) on purchase of jewellery through credit cards.”
GJC has urged the government that in case jewellery sold is reinvested in new jewellery, the exemption from Capital Gain as per Section 54F of the Income Tax Act 1961 should be extended to gems & jewellery Industry.