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GJC Submits Comprehensive Pre-Budget Recommendations for Union Budget 2026–27

Calls for GST Rationalisation and Measures to Boost Formalisation & MSME Growth in Gems & Jewellery Sector

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All India Gem & Jewellery Domestic Council (GJC), the apex body representing India’s domestic gems and jewellery trade, submitted its detailed pre-budget recommendations to the Hon’ble Finance Minister Smt. Nirmala Sitharaman for consideration in the Union Budget 2026–27.

The representation focuses on five core pillars:

  1. GST reforms to restore affordability and eliminate working capital blockage
  2. Direct tax relief on unrealised inventory appreciation due to gold price surge
  3. Strengthening formalisation and consumer protection through policy clarity
  4. Operationalisation of the long-pending Tourist GST Refund Scheme
  5. Sector-specific measures to mobilise idle gold, deepen digital payments, and support MSMEs

Key recommendations include:

Reduction of GST on gold & silver jewellery from 3% to 1.25% (or a uniform 1.5% across the sector) on revenue neutral / equivalence ratio to offset inflation-driven tax burden and revive middle-class and rural demand.

Refund of accumulated ITC on input services or reduction of GST on key input services (rent, security, logistics, etc.) from 18% to 5% to correct inverted duty structure.

Clear circular affirming 5% GST on jewellery job-work services to protect karigars and prevent field-level harassment.

One-year deferral of income tax on unrealised inventory appreciation caused by gold price rise in FY 2025–26, without interest.

Exemption from capital gains tax on exchange of hallmarked jewellery when proceeds are reinvested in new jewellery.

Immediate operationalisation of the Tourist GST Refund scheme at major airports to boost inbound tourism retail spending.

Simplified compliance for MSME jewellers, including higher turnover thresholds for returns and protection from duplicate notices post-audit.

Policy framework for digital gold, rationalised MDR on credit card transactions, and introduction of formal EMI for hallmarked 22-karat jewellery.

The submission emphasises to strengthen India’s position as a global jewellery hub while aligning with national goals of Atmanirbhar Bharat, Make in India, and Viksit Bharat @2047.

Rajesh Rokde

Rajesh Rokde, Chairman, All India Gem & Jewellery Domestic Council (GJC) said: “The sharp rise in gold prices has multiplied the absolute GST burden on consumers and created severe working capital stress for jewellers, even though no policy change has occurred. Our recommendations are not for concessions but for restoring proportionality, liquidity and fairness.

A modest GST reduction, together with relief on notional inventory gains and job-work clarity, will bring millions of transactions back into the formal economy, protect karigar livelihoods, and make jewellery once again an accessible savings asset for Indian households. We are confident that the Hon’ble Finance Minister will consider these practical, calibrated reforms in the upcoming Budget.”

Avinash Gupta, Vice Chairman, GJC added: “Our sector is deeply committed to formalisation, transparency and digital transformation. By operationalising the Tourist GST Refund Scheme, enabling EMI for 22-karat jewellery, capping credit-card MDR, and regulating digital gold, we can significantly enhance traceability, boost tourism-linked exports, and bring younger consumers confidently into the organised market.

These steps will also help reduce India’s reliance on imported bullion over time by mobilising domestic gold through transparent banking channels. We stand ready to partner with the Government to implement these changes smoothly and effectively.”

The council remains committed to partnering with the government to drive transparency, formalization, and consumer trust, ensuring the sector’s contribution to India’s economic and cultural legacy.

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National News

KISNA Diamond & Gold Jewellery launches KISNA Digital Gold in partnership with SafeGold, expanding its omnichannel gold ecosystem

The launch underscores Limelight’s rapid national expansion as it continues to strengthen its retail presence across India.

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  • Marks KISNA’s entry into digital gold ownership, strengthening its omnichannel gold ecosystem
  • Allows customers to start owning gold digitally from Rs.10 with no lock-in
  • Bridges digital gold ownership with physical jewellery redemption across KISNA’s retail network

KISNA Diamond and Gold Jewellery, one of India’s foremost jewellery brands, today announced the launch of KISNA Digital Gold, a strategic move marking its entry into digital gold ownership through a partnership with SafeGold, a product of Digital Gold India Private Limited (DGIPL).

The launch marks KISNA’s entry into digital gold ownership, strengthening its omnichannel gold ecosystem and expanding how customers can engage with gold across digital and physical touchpoints. Through this partnership, KISNA enables customers to buy, sell and redeem digital gold in a safe, transparent and flexible manner, while extending the trust and credibility of its jewellery legacy into a seamless digital-first experience.

KISNA Digital Gold allows customers to begin their gold purchase with an amount as low as Rs.10, significantly lowering the entry barrier to gold ownership. Customers can buy gold in fractional quantities at live market-linked prices, with holdings credited in grams up to four decimal places.

The digital gold purchased is 24-karat gold of 995 fineness or higher purity, stored securely in insured vaults operated by internationally recognised precious metals custodians, with customers retaining full ownership at all times. Customers have the flexibility to sell their digital gold at prevailing prices or redeem it against physical gold jewellery at KISNA stores across India.

Commenting on the launch, Parag Shah, CEO, KISNA Diamond & Gold Jewellery, said: “The launch of KISNA Digital Gold marks a strategic step in expanding how consumers engage with gold. Enabled through SafeGold, the offering allows customers to start with just ₹10 and transact without any lock-in, making gold ownership more accessible and transparent. Over time, we see digital gold becoming a gateway to deeper jewellery relationships, allowing consumers to plan, save and seamlessly convert their digital holdings into physical jewellery through our retail network.”

Commenting on the partnership Rhea Chaterji, COO and Co-founder, SafeGold said: “Our partnership with KISNA brings together trusted jewellery craftsmanship and secure digital gold infrastructure. By combining asset-backed gold ownership, independent trustee oversight and insured custody, we aim to make digital gold a simple, transparent and reliable option for consumers looking to own gold with confidence.”

How KISNA Digital Gold works

  • Digital onboarding: Customers register on KISNA’s platform using basic details and a valid PAN card.
  • Buy gold starting at ₹10: Gold can be purchased at live prices in flexible amounts.

  • Secure custody: Purchased gold is stored in insured vaults with independent trustee oversight to safeguard customer ownership.
  • Transparent tracking: Customers can access real-time balances, invoices and holding statements online.
  • Sell or redeem: Gold can be sold digitally at prevailing prices or redeemed for physical jewellery at KISNA stores nationwide.

There is no lock-in period, offering customers complete flexibility in managing their gold holdings. The offering is currently available to resident Indian customers with a valid PAN card. While buying and selling is enabled digitally through the platform, customers can redeem their digital gold balance at KISNA’s extensive network of stores, seamlessly bridging digital ownership with in-store craftsmanship.

This launch reinforces KISNA’s long-term focus on accessibility, trust and customer-centric innovation, while adapting to evolving consumer preferences around flexibility, transparency and digital convenience in gold ownership.

KISNA Digital Gold represents ownership of physical gold and is not a regulated financial product or deposit, but a digital method of purchasing gold for personal use.

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