GST Reforms Bring Relief To Diamonds And Jewellery Sector, Says GJEPC

The Gem and Jewellery Export Promotion Council (GJEPC) said on Friday that recent GST reforms have eased pressures on the diamonds and jewellery sector.

The government has exempted imports of natural cut and polished diamonds up to 25 cents under the Diamond Imprest Authorisation Scheme (DIAS) from IGST, which was earlier 18 per cent. This move will reduce working capital strain and support small-diamond processing units.

In another relief, the GST on jewellery boxes has been reduced from 12 per cent to 5 per cent. The change will lower costs for retailers and exporters, while also making packaging and gifting more affordable for consumers.

Steps to Support Growth

“These measures will stimulate domestic demand and provide a cushion to our export supply chains, which face global challenges,” GJEPC Chairman Kirit Bhansali said.

He further added that the sector remains committed to passing on benefits such as reduced jewellery box costs to Indian consumers. This, he said, will build trust and support long-term industry growth.

The reforms are also likely to strengthen allied industries. GST reductions in handicrafts, leather goods, and packaging will enhance competitiveness and provide additional support to businesses linked to the gems and jewellery trade.

Strengthening India’s Global Position

According to GJEPC, these tax cuts will reduce operational costs, improve affordability, and boost exports. They will also reinforce India’s status as a global hub for diamond processing and jewellery design.

With greater affordability in the domestic market and stronger supply chains for exports, the reforms are likely to enhance India’s competitiveness in international markets.

By easing capital requirements and cutting costs, the GST reforms provide the sector with both immediate relief and long-term stability.

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