Jewellery Industry Demands Rollback of Gold Import Duty to 4%

SEATTLE (Scrap Monster): The All India Gem and Jewellery Domestic Council (GJC) urged the government to cut down the customs import duty on gold from the current 12.5% to 4%. The higher duty rate will lead to rise in smuggling and unorganized business, it noted. The proposals were submitted ahead of the upcoming Union Budget 2021-22, due to be presented on 1^st February, 2021.

Ashish Pethe, Chairman, GJC urged the government to keep goods falling under HSN-71 out of the provisions of TCS provisions. The 6.67 times funds blocked in TCS results in blockage of funds, he noted. Also, the EMI facility must be extended to the gems and jewellery industry. Furthermore, the cash purchase limit must be increased from the current levels of INR 10,000 to at least INR 100, 000, he urged.

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Meantime, the Gems and Jewellery Export Promotion Council (GJEPC) demanded reduction in import duty on cut and polished precious and semi-precious gemstones from current level of 7.5% to 2.5%. On the other hand, it urged the government to increase the import duty on synthetic cut and polished stones five-folds to 25%. GJEPC also called for changes in taxation provisions, so as to allow sale of rough diamonds in special notified zone in Mumbai.

The industry also demanded setting up of a spot exchange, in order to ensure gold price consistency.