Gems, jewellery sector urges govt to reduce GST to 1% in upcoming Budget
The gems and jewellery sector is urging the government for a GST reduction to 1 per cent in the upcoming Budget. With rising gold rates, the industry is finding the current GST rate burdensome. The proposed reduction would make jewellery more affordable, encourage compliance, and increase the formal economy size.
The gems and jewellery sector has urged the government for a reduction in goods and services tax (GST) to 1 per cent on revenue equivalence ratio to ease the cost burden on the industry in the upcoming Budget. "We seek rationalisation of taxes and availability of finance to support business," the All India Gem and Jewellery Domestic Council (GJC) Chairman Rajesh Rokde said in a statement on Tuesday.
With the continuously increasing gold rates, the current rate of GST is increasingly becoming a burden for the industry and end customers, he said.
Therefore, GJC is urging for a reduction in GST
from the current 3 per cent to 1 per cent in the upcoming Budget, which will
encourage compliance, Rokde said.
The tax reduction will enhance affordability for
consumers, especially in rural areas, and most importantly, improve revenue
collection by increasing the size of the formal economy, he added.
Source: https://retail.economictimes.indiatimes.com/