Mumbai: All India Gems & Jewellery Trade Federation (GJF) highly appreciated the Government’s decision to fix the Goods and Services Tax (GST) at 3% for the Jewellery trade and industry.
Expressing his satisfaction, Mr. Nitin Khandelwal, Chairman, GJF said, “This is a landmark day for the jewellery sector as the Government rightly kept the overall tax burden low in the industry keeping in mind, the unique characteristics of the gems and jewellery sector, the kaarighars and small jewellers. We wholeheartedly thank the Honourable FM Arun Jaitley, State FMs, GST Council, VAT Commissioners, entire CBEC for their tremendous support and guidance. This low GST rate would help the Gold and Jewellery trade to go for more compliant and would mature as an organised sector in the years to come. In fact, this move will encourage the industry to become more organized, and help GJF to take them towards the path of accountability and transparency. We urge jewellers community to exercise utmost preparedness and start migrating to the GST regime, with the help of Software that will be launched soon by GJF, that will help the jewellers migrate and comply”.
Mr. Somasundaram PR, Managing Director, India, World Gold Council said, “GST is the single biggest indirect tax reform in India. It is intended to bring transparency, increase tax compliance and improve transaction traceability. The Indian government’s decision to apply 3% GST on gold is an encouraging step in the current context to stabilise the industry and address the concerns of the millions employed in the industry. Together with customs duty of 10%, the total tax on gold is still high and will continue to have an impact on the jewellery industry. This may be an opportune time for the government to cut the import duty and bring down the total tax on gold significantly lower so unauthorised imports are totally eliminated and industry embraces transparency in letter and spirit under GST.”
“However, transition to GST will be disruptive in the short-term, as the large unorganised segment and consumers adjusts to the new tax system, but in the longer-term it will streamline gold trade and boost value addition,” he added.
Mr. Saurabh Gadgil, Chairman & Managing Director, PNG Jewellers and Director, Indian Bullion Jewellers Association said, “The declaration of GST for the Gems and jewellery sector at 3 percent for gold articles and polished diamond and 0.25 percent on rough diamond is very positive move by the government. It will give a thumping boost to the organised players and organised trade, it is also a boon for the consumer, furthermore the government will also benefit as more and more players will turn towards organised trade by complying to GST. Currently we feel it is a win-win for everyone.”
Ms. Tanya Rastogi, Director, Lala Jugal Kishore Jewellers said, “Well 3% will not cause any disruptions and we are glad that it did not fall in 5% slab. This bill is welcomed by the industry and will not impact consumer’s sentiment in any way though there is a possibility that the cost to the jeweller may increase. I am yet to study the bill in detail and its implementation. However, gems & Jewellery industry being one of the growth sectors, this is a good slab.”
Mr. Aditya Pethe, Director, WHP Jewellers said, “Currently, the industry pays taxes around 2 to 2.5% so 3% is almost as good as no impact by the taxes. Gems and Jewellery sector is unorganized space and a lot of players are in the rural regions too. With this taxation, many unorganized players will be encouraged to enter the organized trade. We are yet to study how the input tax credit would work and will plan our strategy accordingly Overall, the bill does not seem to have an inflammatory impact as most of the rates are revolving around the current tax brackets.”
Mr. Samir Sagar, Director, Manubhai Jewellers said, “It is really good to see that the government has been considerate towards the Gems & Jewellery industry and put in under the 3% slab. This will have a positive impact on the sector and encourage it to be more streamlined. Consumers and jewellers will take the first few months to adapt to the new rule but once that phase ends, the market will stabilize. We think this new bill will bring about stability in processes and create a level playing field for businesses in the industry.” said
Mr. Ishu Datwani, Founder, ANMOL Jewellers said, “I’m happy at the understanding & maturity that the Government has shown towards the jewellery segment. Now we jewellers should reciprocate with embracing GST & the special treatment given to us. I do want to thank GJF for working tirelessly for the industry and making this possible.”