Some industry leaders, however, voiced concern over the sector’s partial exclusion from the broader GST overhaul
Mumbai: The Gem & Jewellery Export Promotion Council (GJEPC) and the All India Gem and Jewellery Domestic Council (GJC) have welcomed key GST reforms announced at the 56th GST Council meeting, calling them timely and growth-oriented, with the potential to revive consumer sentiment and ease export chain pressures.
One of the most impactful measures for the gems and jewellery sector is the elimination of IGST (previously 18%) on imports of natural cut and polished diamonds up to 25 cents under the Diamond Imprest Authorization Scheme (DIAS). This exemption is expected to free up working capital for exporters and manufacturers in the small-diamond segment. Another welcome move is the reduction of GST on jewellery boxes from 12% to 5%, which will benefit both retailers and end-consumers through lower packaging costs.
“We welcome the GST reforms announced under the guidance of Finance Minister Nirmala Sitharaman,” said Kirit Bhansali, Chairman, GJEPC. “These measures will stimulate domestic demand and provide a cushion to our export supply chains, which are under pressure due to global challenges.”
However, some industry leaders voiced concern over the sector’s partial exclusion from the broader GST overhaul. Rajesh Rokde, Chairman, GJC, noted that while GST slabs have been reduced from four to two (5% and 18%), the gems and jewellery sector hasn’t seen direct structural relief. “The reforms do not offset the adverse impact of U.S. tariffs, since input costs and compliance burdens remain unchanged,” Rokde said. Still, he acknowledged the indirect benefits of consumption-driven growth.
GJC Vice Chairman Avinash Gupta struck an optimistic note: “With the rollout of next-gen GST reforms, we believe consumers will experience a tangible increase in disposable income—thanks to the combined effect of income tax relief and reduced GST rates. This dual benefit puts more money directly into the hands of households, encouraging aspirational purchases and lifestyle upgrades.”
Effective from September 22, the revised GST regime is expected to boost consumption ahead of the festive season. Industry stakeholders believe the reforms will help restore growth momentum in the sector, even as global uncertainties persist.
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