Mumbai: India’s Gem & Jewellery Export Promotion Council (GJEPC) delegation led by Chairman Mr. Praveenshankar Pandya made a presentation on GST issues to the Hon’ble Union Finance Minister Mr. Arun Jaitley at the GST conclave organised by the Maharashtra State Government in Mumbai on March 26. The meeting was also attended by Hon’ble Revenue Secretary, Dr. Hasmukh Adhia.
The issues and suggestions made by the GJEPC on GST were focused on the export sector and were presented by Chairman and taxation expert Rohan Shah. The reliefs sought were (a) nil rating on import of rough diamonds and coloured gemstones, (b) exemption to all domestic transactions in rough as well as polished diamonds and coloured gemstones prior to their exports, and, (c) exemption to precious metals procured for manufacture and export of jewellery, in terms of existing schemes.
Some of the key points mentioned by the minister and the secretary in their concluding remarks include:
- The Government would reconsider as to whether taxes leviable in the export value chain should be neutralised through refund or exemption;
- It was reiterated that tax rates under GST would be kept closer to the current tax rates;
In subsequent discussions, it has been suggested that the Council should make a representation to the special committee constituted for the purpose. It should present details regarding the unique nature of the gem and jewllery industry, and how specific aspects of its working mean that imposing the refund mechanism could affect the livelihoods of millions of workers.
Council officials are hopeful that the meeting with the concerned officials would take place within the next week.