National News

GST reforms a bold and timely step to ease pressure on export chains: GJEPC

Published

4 months ago

September 4, 2025

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IGST reduced from 18% to Nil on Natural Cut and Polished Diamonds up to 25 cents (1/4 carats) imported under Diamond Imprest Authorization Scheme
Reduced GST on jewellery boxes from 12% to 5%

The Gem & Jewellery Export Promotion Council (GJEPC) has warmly welcomed the GST reforms announced at the 56th GST Council meeting held on 3rd September in New Delhi under the chairpersonship of Hon’ble Union Finance & Corporate Affairs Minister, Smt Nirmala Sitharaman. The rationalisation of GST rates across multiple sectors reflects the Government’s commitment to stimulating domestic demand, easing cost pressures, and enhancing the competitiveness of Indian industry.

For the diamonds and jewellery sector, the reforms bring significant relief. The Council’s decision to exempt imports of natural cut and polished diamonds up to 25 cents under the Diamond Imprest Authorisation Scheme (DIAS) from IGST (previously 18%) will ease working capital pressures and support manufacturers and exporters engaged in small-diamond processing. In addition, the reduction of GST on jewellery boxes from 12% to 5% will lower costs for retailers and exporters, while making packaging and gifting more affordable for consumers—benefiting both businesses and buyers alike.

Kirit Bhansali, Chairman, GJEPC, said, “We welcome the GST reforms announced under the guidance of Hon’ble Finance Minister Smt Nirmala Sitharaman. These measures will stimulate domestic demand and provide a cushion to our export supply chains, which are under pressure due to global challenges. The diamonds and jewellery sector remains committed to ensuring that the benefits, including reduced costs for jewellery boxes, are transparently passed on to Indian consumers, reinforcing trust and supporting long-term industry growth.”

Rajesh Rokde
Chairman, GJC

The current GST reforms (GST 2.0) offers no direct and immediate relief to gems and jewellery exporters against. Importantly, the gems and jewellery sector was excluded from the latest reforms, which reduced the number of GST slabs from four to two (5% and 18%), eliminated the 12% and 28% brackets, and introduced a 40% rate for luxury goods. As a result, the reforms do not offset the adverse impact of U.S. tariffs, since input costs and compliance burdens remain unchanged. However, by focusing on stimulating consumption, the GST changes may support the gems and jewellery sector indirectly over the longer term. The new rates, effective from September 22, are expected to boost consumption, with the overall fiscal impact of the overhaul estimated at around Rs 50,000 crore.

Avinash Gupta
Vice Chairman – GJC

As expected, the GST rate for the gem and jewellery sector remains unchanged at 3%. The GJC has consistently represented to the government that, given the sharp rise in gold prices and in line with revenue-neutral principles, the GST rate should ideally be reduced to 1%–1.25%.
The introduction of the next-generation GST reforms, streamlining the system into just two slabs—5% and 18%—alongside the proposed income tax reforms in the budget, is set to provide a significant boost to domestic consumption. This, in turn, will benefit the gem and jewellery sector by driving higher sales, particularly during the upcoming festive season.
The industry views this reform as a timely step that will brighten the festive outlook and ensure a truly prosperous Diwali. For this initiative, we extend our gratitude to our Honourable Prime Minister and Finance Minister for bringing in such a much-needed reform at the right time.

Saiyam Mehra
IPC- GJC and Director – Unique Chains and Jewels Ltd

The next-gen GST reforms mark a pivotal moment for India’s consumption-driven economy. By streamlining tax slabs and easing the burden on essential goods, the government has empowered consumers with greater purchasing power. For the gem and jewellery industry, this translates into renewed optimism—where jewellery is not just a luxury, but a preferred investment and cultural expression. We believe this reform will unlock fresh demand, especially from emerging markets and younger buyers seeking value and authenticity.

Prabhat Ranjan, Senior Director, Nexdigm, shares insights on sectoral impact of GST Council’s latest reforms The GST Council has retained the 3% rate on gold. This stability is crucial in a sentiment-driven market where seasonal demand peaks during weddings and festivals. By avoiding volatility, the Council discourages informal trade and sustains confidence in the organized sector.

Sometimes, stability is the strongest reform. By keeping GST on gold unchanged, the Council has preserved predictability in a market deeply tied to culture and sentiment. This move reassures consumers and jewellers alike, while ensuring the organized sector continues to flourish.

These reforms, combined with GST reductions in allied sectors such as handicrafts, leather goods, and packaging, will further strengthen India’s diamonds and jewellery ecosystem. By lowering operational costs, enhancing affordability, and boosting global competitiveness, they reinforce India’s position as a leading hub for diamond processing, jewellery design, and exports.

GJEPC appreciates the Government’s consultative approach and is confident that these measures will deliver broad-based benefits, supporting both domestic growth and export resilience for the Indian diamonds and jewellery sector.

National News

Gold & Precious Metals – A future outlook

Published

4 hours ago

January 13, 2026

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The session saw a power packed panel of experts that comprisedSurendra Mehta, National Secretary- IBJA,Ranjith Singh,Head of Business Development, IIBX, Shweta Dhanak, Director – Vijay Exports,S Thirupathi Rajan, MD Goldsmith Academy, Shivanshu Mehta, SVP & Head Bullion-MCX.The session was moderated by Chirag Seth, Principal Consultant, Metals Focus.

Some salient points made by the panelists:

Gold prices are not linked to consumer demand. They are linked to central bank buying and ETFs

Till the banking system doesn’t collapse, gold price will continue to rise

Jewellers were advised to use a mix of futures and options for risk mitigation

Given the current situation manufacturers selling on credit or unfavorable deals could be fatal flaw for business.

Precious metals forecast: Surendra Mehta said he sees gold in 2026 in $4900-5100 range and silver in $90-105.Looking further he said by 2030-2035 gold could touch $18000- 20000 and silver could reach $500. Chirag Seth predicted silver touching $105 this year and gold moving in the $ 5200- $ 5500.