After fixing the GST (Goods and Services Tax) on 18% earlier this month, the GST Council in the Indian government has decided to slash the GST on jewelry making to 5%.
According to Diamond World, the earlier decision “received a lot of criticism from the jewellery industry and they referred it as impractical” since “95% of the jewellery is made on the basis of work”. The decision to fix the GST on 18% would have led, according to industry insiders, to loss of jobs.
Nitin Khandelwal, Chairman of the All India Gems & Jewellery Trade Federation (GJF), commented on the GST council’s reduction of GST rate on jewellery making: “We are extremely thankful to the government for implementing 5% GST on making charges / Job work. […] the lower rate of job work is a big relief for manufacturers and karigars and also for the customers as they do [not] have to now end up paying the earlier proposed 18% […]”.
