The gems and jewelry industry has heaved a sigh of relief, as the finance ministry has announced no IGST will be levied on gem and jewelry carried outside of the country for exhibition purpose. Till now, gem & jewelry which was being carried outside of the country even for exhibition/ consignment purpose was attracting IGST at reimport. This comes into effect after several representations made by the trade and industry to the finance ministry for exemption of IGST for the gems and jewelry carried for exhibition purpose. The statement from the government clarified that that the activity of sending/taking the goods out of India for exhibition or on consignment basis for export promotion does not constitute as supply as the said activity does not fall within the scope of section 7 of the CGST Act as there is no consideration at that point in time.
Since such activity is not a supply, the same cannot be considered as “Zero Rated Supply‟ as per the provisions contained in section 16 of the IGST Act. Commenting on this development, Mr. Pramod Kumar Agrawal, chairman, Gem, and Jewellery Export Promotion Council (GJEPC) said, “We appreciate and welcome this industry-friendly step taken by the government. As the apex body of the industry, while making representations we have not left any stone unturned in our genuine effort towards resolving this issue. The move will definitely provide respite to our member exporters.” The circular from the finance ministry also clarifies that activity of sending/taking the goods out of India for exhibitions or on a consignment basis for export promotion will not be considered as supply.