The gems and jewellery industry is not only facing headwinds for exports but also feeling the heat of tax burden. While the exporters have long been demanding to remove the 3% GST on unsold products brought back after participating in overseas exhibitions, the 3% GST coloured stones for using jewellery in the domestic market has been an irritant for the manufacturers. “There is no logic on levying 3% GST on unsold products brought back to the country. Jewellers participating in overseas exhibitions cannot sell all their products. Some of the items come back. While the government rule says when the products are sold, the exporters will get back the products, lot of money is locked up in the system adding to the working capital woes of the exporters,” said Rajiv Jain secretary of JJS, which will be held this year from December 21 to 24
Similarly, for the domestic use diamonds are taxed at 0.25% while coloured stones attract 3% GST. The anomaly has been there which needs to be corrected. “Since most of the coloured stone business is concentrated in Rajasthan, it has not attracted the attention of the GST council. We have drawn attention of the government to this anomaly but are still awaiting for the rationalization,” added Jain.
Gems and jewellery exports during April-November have declined by 7% and the domestic market demand is yet to pick up. But organizers of the annual Jaipur Jewellery Show (JJS) said that the event still remains a crowd-puller. Vimal Chand Surana, chairman of JJS, said that over 500 top retailers of India will be participating in the in the show, which has ‘Reflection of Royalty and Creativity’ as its theme this year. This is most apt keeping in mind that Pink City is the land of royalty and gems and jewellery is a significant element of the same. JJS serves as a platform to guide traders and policy makers as well as inspire scope for creativity.
Media coordinator of JJS Ajay Kala said the show already has around 30,000 online registrations with 28,000 repeat registrations and 2,000 new registrations. The show will have 825 booths this year pread over 2 lakhs sq ft area, added Kala. “The number of repeat exhibitors at the show continues to grow every year. This year too, the show will feature different sections for costume jewellery, silvery jewellery and artefacts, gold jewellery, institutions, allied machinery, etc,” added Kala.