GJEPC Seeks Exemption For Gem And Jewellery Exports

KOLKATA: Gem & Jewellery Export Promotion Council (GJEPC) has sought exemption for gem and jewellery export transactions and 1.25% GST rates for domestic transactions even as the GST Council commenced a crucial meeting to set rates.

At present, gems & jewellery exports are effectively zero rated. Hence any element of tax in exports is required to be rebated. As regards VAT, it is typically charged at the rate of 1% on the sale price by almost all the States in India.

In its representation, GJEPC mentioned that export transactions should not be subjected to any effective GST as regards exports. All related consumption of raw materials, inputs and input services such as input of rough diamonds gold/ silver/platinum (through duty free export promotion schemes) at the input level should continue to be free from levy of any import duty/GST. In the representation, GJEPC has mentioned that all transactions, whether direct or indirect, for exports, should continue not to be taxed with any indirect taxes in the form of GST.

Source: Dailyshippingtimes.com