GJEPC Chairman terms 0.25 per cent GST on import of rough diamonds a 'retrograde step'

SURAT: Not every sector of industry seems happy with the GST slot they've been placed in, and the Gems and Jewelry Export Promotion Council (GJEPC) is among those unhappy. The GJEPC has termed the GST on rough diamonds a 'retrograde step'. The GST Council has decided on 3 per cent GST on diamonds and 0.25 per cent on the import of rough diamonds.

Chairman of GJEPC, Praveen Shaker Pandya was quoted in media reports as having said, "Diamonds are the key raw materials for gem and jewelry exports business. Rough diamonds have been kept out of the purview of taxes even in various Asian countries which are globally competitive. It is difficult for gems & jewelry exporters to pay 0.25 per cent and then initiate process for refunds, etc."

The GJEPC Chairman was quoted in media reports as saying, "Owing to the thin margins in the segment, each businesses will have to re-evaluate the viability of conducting the cutting and polishing activity in India, in light of the extent of strain GST would bring on its working capital, and, eventually, this may lead to significant volume of flight of capital and employment to other jurisdictions."

On behalf of GJEPC, Praveen Shaker Pandya said he was requesting the Government to reconsider its decision of taxing rough diamond imports under GST, given the probable repercussions.

Rough diamond imports constitute a segment which exports 95 per cent of the output, and, whose global footprint is competitive, given competition from other competitive economies. The upfront levy of GST on rough imports, which was hitherto exempted, would invariably cause a major setback to the trade and impact India's significance in the global markets, media reported quoted the GJEPC Chairman as having said.

(C) A MEDIA INC./ THE INVESTORS INSIGHT / I N D I A/ 2017


NEWS BUREAU- 6/4/2017 2:29:10 PM


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