GJC Pushes For 1% GST On Jewellery, Seeks Structural Reforms In Budget 2025

1/8/2025 11:36:00 PM

(MENAFN- KNN India) Mumbai, Jan 8 (KNN) The gems and jewellery sector has called on the government to introduce significant reforms in the upcoming Union Budget to ease financial pressures and enhance the industry's growth.

The All India Gem and Jewellery Domestic Council (GJC) has emphasised the need for a reduction in the Goods and Services Tax (GST) and the creation of a dedicated Ministry to support this vital sector.

Addressing these demands, GJC Chairman Rajesh Rokde highlighted the burden of the current 3 per cent GST rate amid escalating Gold prices.“We urge the government to reduce GST to 1 per cent on a revenue equivalence ratio.

This move will not only encourage compliance but also boost affordability for consumers, particularly in rural areas, while expanding the formal economy and enhancing revenue collection,” Rokde said in a statement on Tuesday.

The GJC also underscored the importance of distinguishing between natural and lab-grown diamonds by introducing a concessional GST rate for the latter, given their sustainable and cost-effective nature. Currently, both categories are taxed at the same rate.

Beyond tax reforms, the council has pushed for broader structural changes, including the establishment of a dedicated ministry for the jewellery sector, state-specific nodal offices, and the appointment of a central minister to address industry-specific challenges effectively.

Avinash Gupta, GJC's Vice-Chairman, stressed the need to revamp the Gold Monetisation Scheme to unlock idle household gold, thereby reducing dependency on imports.

“Additionally, we request the government to enable EMI options for jewellery purchases, a long-standing demand that would promote accessibility and support business growth,” Gupta noted.

As Budget Day approaches, the jewellery industry hopes its demands will receive serious consideration, paving the way for a more resilient and self-reliant sector.

(KNN Bureau)

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