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INDIA: TAXES CUT ON DIAMOND RELATED WORK AND TRADE

GJEPC: "The government has given a positive stimulus to the economy and the industry"
gold rings jewelry dollar
Credit: AVprophoto / shutterstock.com

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.

 

India Gems Diamonds
Credit: David Talukdar / shutterstock.com

 

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.

 

India wedding diamond ring
Credit: Sukpaiboonwat / shutterstock.com

 

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”.



Tags: Diamonds News, Jewelry News, Diamond Industry News, Diamond Jewelry News, India News

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