The All India Gem and Jewellery Domestic Council (GJC) requested the government to diminish the rate of GST (goods and services tax) to 1.25%.
Inside the pre-budget 2022-23 suggestions to the central finance minister Nirmala Sitharaman said that GJC seeks the cumulative GST rate with 1.25% relied on the revenue equivalence principle on gold, precious metals, gems and articles of jewellery made of such goods, the apex industry body said in a statement. In the present times, the GST rate for gold, gems and jewellery is 3%.
The national industry requested the Finance minister to surge the PAN card limit to Rs 5 lakh from Rs 2 lakh as various households in rural India does not hold the PAN card and suffer from issues in arranging the lowest needed jewellery when required particularly after the pandemic.
GJC requested the government for transparency on the minimum quantity of gold that a person could deposit under the gold monetisation scheme (GMS), excluding asking by any council.
Moreover, the industry urges that EMI facility for buying 22K gold jewellery must be permitted to gems and jewellery industry that pointed to business growth of the industry post to the pandemic.
“Our industry has suffered a lot during these harsh times of the pandemic, and it is also identified as one of the ‘stressed sectors’ in K V Kamath’s report.”
GJC Chairman Ashish Pethe stated that “Hence, we have proposed changes in Section 40A of the Income Tax Act so that the existing daily cash limit of Rs 10,000 per day be increased to Rs 1,00,000 per day,”
GJC requested the government to discount the bank commission (1-1.5 per cent) upon buying jewellery via credit cards hence ensuring to surge Digital India for the gems and jewellery industry.
Pethe commented “We are confident and hopeful that there may be good reliefs announced for our industry during the Budget session,”
GJC asked the government that towards the case of the jewellery sold is reinvested inside the new jewellery the privileged from the capital gains under section 54F of the income tax act 1961 must be postponed to the gems and jewellery industry.
From these conditions, the industry goes for organized and compliant business practices. To make the GMS more advanced GJC mentioned that the government should provide the privilege to households towards the minimum of 500 grams of deposited gold as it has ancestral nature, from an inquiry by any tax department. GMS will be effective from this and provide the advantage to the government and participants at large GJC mentioned.
The total deposits collected via banks beneath GMS are nearly 11.1 tonnes which are very less in number with respect to the estimated holdings of 23,000-24,000 tonnes.
