India’s Goods and Services Tax Council, which convened at the end of June, has revised the Goods and Services Tax (GST) rates for a series of products, including a hike from 0.25% to 1.5% on polished diamonds. According to Rough & Polished, the new GST will go into effect on July 18.
The diamond sector has welcomed the hike “as it resolves their issue of Input Tax Credit (ITC) accumulation being faced on account of inverted duty under GST Regime,” according to the report.
Colin Shah. Chairman of GJEPC, the apex body of gem and jewelry trade in India, said the organization was thankful as “the increase in GST rate on polished diamonds will not only stop further accumulation of ITC but help in release of blocked working capital and stimulate industry growth.”
