Budget 2021: Gems, jewelry trade seeks minimize in import obligation, GST

Image Source : PEXELS.COM Budget 2021: Gems, jewelry trade seeks minimize in import obligation, GST
The gem and jewelry trade has lots expectation from the Modi authorities within the upcoming Union Budget 2021-22. The trade needs the Centre to scale back customs obligation on gold, withdraw of tax collected at supply (TCS), minimize in import obligation on polished valuable and semi-precious gem stones.
According to Ashish Pethe, the chairman of All India Gem and Jewellery Domestic Council (GJC), the federal government ought to assess the hostile affect of upper import obligation on the jewelry commerce and prompt to chop the customs obligation to 4 per cent from the present 12.5 per cent. 
Pethe stated that if the tax fee isn’t stored at this stage, it would encourage smuggling and encourage individuals to do unorganised enterprise.
In the Budget 2019, the federal government had elevated customs obligation on gold. Gold attracted import obligation of 10 per cent which the federal government was hiked to 12.5 per cent. Gold additionally attracts three per cent GST and the full obligation and GST implication work out at 15.5 per cent. The excessive taxes could lead to smuggling and tax evasion.
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Surabh Khandelwal, proprietor at Dhanvi Diamond, stated that the sector expects that the federal government will take essential steps within the price range to assist companies affected by the pandemic.
“Today businessmen are expecting a simple and easy taxation system from the government. I hope the government makes the taxation procedure simpler so that it is easy for a common businessman to understand it. In recent times a new tax TCS has been imposed on the jewelry segment, we have already been already under the supervision of 8-10 taxes, and the addition of this new tax will further add to more compliance, more taxes, and more complicated procedure. A time which we should spend in the progress of our business goes in understanding the minute compliance and the taxation system. From budget 2021 we hope that the goverment comes up with more simplified taxation procedures in our sector which can be achieved through a single and simplified taxation policy instead of multiple and complicated taxations,” he stated.
Vastupal Ranka, director, Rare Jewels from the House Of Ranka Jewellers, stated that the gems and jewelry sector is significant for the expansion of the financial system, “so we expect the budget to be good for our sector”.

“When there was a current account deficit, the customs duties on gold and diamonds were greatly increased, due to which the prices in India for gold are higher than our neighbouring countries. I expect the custom duties to be reduced to the minimum,” Vastupal stated.
Where gold comes via unauthorised channels, he stated, “we are also losing a lot of international business”.
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“A robust e-commerce policy is also important as that helps reach a global market,” he stated.
Vastupal additionally stated that GST charges on gold bullion and jewelry must be diminished from 3 per cent to 1 per cent, as it would result in extra gross sales in payments, which consequently assist companies throughout the spectrum of the market.
“We are positive that the government will consider these factors, as they are highly effective in helping the economy bounce back and continue to grow,” he stated.
The gold and diamond commerce collectively accounts for 7.5 per cent of India’s GDP and 14 per cent of the nation’s complete exports.
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