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

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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

 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.

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Abaran Timeless Jewellery Champions Heritage Conservation To Safeguard Traditional Craftsmanship

Support For Hastashilpa Heritage Village Reflects A Commitment To Preserving India’s Architectural and Artisanal Legacy For Future Generations.

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As India’s historic buildings continue to face mounting pressure from urbanisation, redevelopment, and changing lifestyles, concerns are growing not only about the loss of architectural landmarks but also the disappearance of the traditional skills and craftsmanship that created them. Recognising this challenge, Abaran Timeless Jewellery has extended its support to Hastashilpa Heritage Village, reinforcing the importance of preserving cultural heritage and artisanal knowledge.

Through the Abaran Foundation, the philanthropic arm of the Bengaluru-based jewellery house, the company supports a range of initiatives spanning education, healthcare, community welfare, arts, and heritage conservation. Its association with Hastashilpa Heritage Village reflects a deeper commitment to protecting India’s rich cultural legacy beyond the jewellery industry.

Located in Manipal, Hastashilpa Heritage Village is regarded as one of India’s most significant heritage conservation projects. Founded by conservationist Vijaynath Shenoy, the village has successfully rescued and reconstructed traditional homes from across coastal Karnataka, preserving architectural styles and craftsmanship that may otherwise have been lost to neglect or redevelopment.

The conservation process shares many similarities with the art of jewellery making. Every carved beam, decorative element, and handcrafted detail requires meticulous documentation, restoration, and respect for traditional techniques. Much like restoring an heirloom jewel, preserving heritage architecture demands both technical expertise and cultural sensitivity.

For Pratap Kamath, Managing Director of Abaran Timeless Jewellery, the initiative holds personal significance. He noted that the heritage village is located in Udupi, where Abaran was originally founded by his grandfather, Sri Sadanand Kamath. According to Pratap Kamath, the company was inspired by the efforts to preserve heritage homes that might otherwise have vanished as younger generations moved away in search of new opportunities.

His observations reflect a wider concern within the luxury and craft sectors. Whether restoring a centuries-old structure or creating a handcrafted jewel, both disciplines depend on knowledge and expertise that cannot be easily replicated through mass production. Once lost, such skills are extremely difficult to recover.

At the same time, consumers are increasingly drawn to brands that demonstrate authenticity, cultural relevance, and a commitment to preserving heritage. As a result, heritage conservation is evolving from a philanthropic activity into an important reflection of a brand’s values and identity.

Initiatives such as Hastashilpa Heritage Village serve as an important reminder that heritage extends beyond products—it also includes the ecosystems of craft, culture, knowledge, and tradition that make those creations possible.

As India’s architectural treasures and jewellery traditions navigate similar challenges, efforts to preserve one may ultimately help protect the other, ensuring that valuable skills and cultural legacies continue to inspire future generations.

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