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Gem and Jewellery Export Promotion Council welcomes GST rate rationalisation for cut and polished diamonds

It is estimated that over Rs 600 crores of ITC accumulation is there as on date with the diamond industry.

June 29, 2022 / 09:43 PM IST
An employee inspects a used diamond ring inside the Komehyo Co. jewelry store in the Shinjukuo district of Tokyo, Japan, on Friday, May 15, 2015. As the population shrinks and the number of retirees grows, Japan is seeing the market for second-hand goods expand as people unload luxury items acquired during the boom years. Photographer: Akio Kon

An employee inspects a used diamond ring inside the Komehyo Co. jewelry store in the Shinjukuo district of Tokyo, Japan, on Friday, May 15, 2015. As the population shrinks and the number of retirees grows, Japan is seeing the market for second-hand goods expand as people unload luxury items acquired during the boom years. Photographer: Akio Kon

Apex industry body the Gem and Jewellery Export Promotion Council (GJEPC) on June 29 welcomed the government’s decision for rationalising the GST rates on cut and polished diamonds to 1.5 percent saying it will help resolve the industry’s issue on input tax credit (ITC).

"We are thankful to the finance minister for rationalising the GST rates on CPD from 0.25 percent to 1.5 percent and giving relief with regard to the issue of ITC accumulation for the diamond sector. It is estimated that over Rs 600 crores of ITC accumulation is there as on date with the diamond industry," GJEPC chairman Colin Shah said in a statement.

He said that the increase in GST rate on CPD will not only stop further accumulation of ITC, but release blocked working capital and stimulate industry growth. "We would now urge the government to formalise a mechanism for the traders to receive the refund of the accumulated GST," Shah added.
PTI
first published: Jun 29, 2022 09:43 pm
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