INDIA: TAXES CUT ON DIAMOND RELATED WORK AND TRADE
The Indian government has cut the Goods and Service Tax (GST) on work related to diamonds to 1.5% in an “attempt to shore up the ailing diamond industry”, according to a report quoted in IDEX Online.
This latest move will free up Rs 1,500 crore ($212 million) in blocked working capital into the diamond pipeline, according to the same report. In addition, the government has cut the GST rate from 3% to 0.25% on the trade of precious stones. Finally, GST on jewellery exports have been cut to zero.
Pramod Kumar Agrawal, Chairman of India’s Gem and Jewellery Export Promotion Council (GJEPC), is quoted as saying: “The measures will provide impetus to the sector, help upscale manufacturing and augment exports of gems and jewelry from India. The government has given a positive stimulus to the economy and the industry facing challenging times due to slump in global demand and also due to low domestic consumption”.