GST Effect India’s Jeweler Sector
India’s gem & jewellery, (ornament) industry has been distress from constant changes and doubtful in tax policy. It is a wide-spread feeling among the jewellery companionship that the Indian Govt. Needs to work towards a more uniform and compatible taxation policy under GST regime for the GJIndustry.
Industry has recently requested the govt. to implement uniform 1% GST across the entire G&J sector as such an initiative would bring all jewellery manufacturers under one single umbrella. Such action would also help the G&J sector to Encourage ‘Make in India’ concept at grass root level and help in getting the sector more organized.
But india’s chief economic advisor Mr. Arvind Subramanian has recommended a 2 to 6% tax on precious metals, which is above the 1% VAT applicable on them in most of the Indian states. Mr. Arvind feels that taxing precious metals close to the upper limit of 6% would help in keeping the standard GST rate lower for most of the goods.
