The All-India Gem and Jewellery Trade Federation has proposed a 1.25 per cent tax rate on gems and jewellery products under the GST regime.
Kolkata: The All-India Gem and Jewellery Trade Federation (GJF), which has proposed a 1.25 per cent tax rate on gems and jewellery products under the GST regime, is still in dialogue with the government to address its concerns.
“If the rate is fixed above that, then there will be resistance from consumers and non-compliance. We are still discussing the issue with the government. The rate is kept open as of now,” Nitin Khandelwal, chairman of the GJF said on Monday. The GJF is organising the Fifth Preferred Manufacturer of India (PMI) regional networking meet at a five-star hotel from Monday to Wednesday.
“The GST is applicable in the supply of goods. Hence, any movement of gems and jewellery products from one place to another will come under the purview of the indirect tax. Gems and jewellery is a sensitive industry and there are 10 to 15 movements in the manufacturing value chain. If the tax is levied at every movement, it would create many problems,” the Federation’s former chairman Bachhraj Bamalwa said. The other concern that the Federation has expressed was that the workmen were required to register with the GST if they receive over Rs 20 lakh per year. “We are demanding that the limit be raised to Rs 50 lakh per year,” Mr Bamlawa said.
The Federation has discussed the issue with 17 finance ministers of different states, nine VAT commissioners, Union revenue secretary and finance minister Arun Jaitley. “They have assured us that our concerns will be taken care of,” he added. It has almost completed the development of the software needed for GST implementation slated to put into effect from July this year.