The Gem & Jewellery Export Promotion Council (GJEPC) submitted its set of pre-budget proposals to the Government of India in New Delhi on 7th November, aimed at enhancing the ease of doing business and driving export growth.

The delegation, led by Kirit Bhansali, Chairman, GJEPC, along with Anoop Mehta, Convener, Diamond Panel; K. Srinivasan, Convener, Gold Panel; and Sabyasachi Ray, Executive Director, GJEPC, presented key recommendations addressing critical industry needs.

Among the major proposals were a liberalised taxation framework for rough diamond trading in Special Notified Zones—aligned with international hubs such as Israel, Dubai, and Belgium—and an extension of customs duty exemption on lab-grown diamond seeds beyond March 2026, to support India’s rapidly expanding LGD sector.

GJEPC also sought retrospective applicability of the ±0.01 mm height variance rule (2014–2025) for re-imported diamonds sent for certification and grading, ad-valorem duty drawbacks for gold and silver, and the inclusion of platinum jewellery and gold articles in the drawback scheme.

To attract foreign tourists, the Council recommended a comprehensive tax refund mechanism covering GST, Basic Customs Duty, and Agriculture Infrastructure and Development Cess (AIDC), supported by digital integration and refund counters at airports.

Further proposals included greater flexibility for SEZs—allowing reverse job work, domestic sales on duty payment, and “Bill to, Ship to” procurement—to streamline logistics.

GJEPC also urged the reduction of import duty on cut and polished diamonds and coloured gemstones from 5% to 2.5%, abolition of duty on rough gemstones, and enhancement of personal carriage limits for overseas exhibitions and business tours.

Highlighting industry challenges, the Council appealed for relief from transfer pricing penalties under Section 271(6), citing the industry’s thin profit margins and established judicial precedents supporting its compliance approach.