Mumbai, Feb 6 (PTI) The gems and jewellery industry on Thursday urged the government to rationalise the Goods and Services Tax on bullion and ornaments by slashing it to 1.25 per cent to boost sales.
“The jewellery industry has been burdened with high taxation rates, negatively impacting businesses and encouraging unregulated trade.
“We request the GST Council and concerned authorities to reconsider and rationalise the GST rate to 1.25 per cent from the current 3 per cent, ensuring sustainable growth for the industry while maintaining a robust tax base,” All India Gem and Jewellery Domestic Council chairman Rajesh Rokde said in a statement.
Further explaining, Rokde said, a core principle of GST determination was revenue neutrality, ensuring that taxation levels remain equivalent to pre-GST rates and based on the past indirect tax structure, the revenue-neutral rate for the gems and jewellery industry should be 1.25 per cent, not the current 3 per cent.
Lowering the GST would encourage domestic manufacturers, boost job creation, and position India as a global hub for jewellery making, he added.
