The government has made some changes in the earlier announced GST rate structure giving some relaxation in certain categories of goods and services related to the gem and jewellery industry. The decision to amend the rates was taken at the GST Council meeting held on June 11, Hon’ble Finance Minister Shri Arun Jaitley announced, adding that this was in response to representations received from various bodies.

As reported earlier, following last week’s announcement of GST rates applicable to the industry, GJEPC met various ministers and officials at the state and central level asking for review on a number of issues. Other industry bodies had also urged the government for certain reliefs.

After due consideration, the changes announced by the government include:

1. Reduction of GST rate for rough precious and semi-precious stones from 3% to 0.25%
2. Services by way of job work in relation to: cut and polished diamonds, precious and semi-precious stones or plain and studded jewellery of gold and other precious metals, falling under Chapter 71 of HSN will be charged at 5% GST (against the earlier 18%) with Full ITC
3. Exemption from IGST for re-import of cut & polished diamonds (each of 0.25 ct or above) sent to specified testing agencies or labs abroad for testing by an exporter (with annual export turnover of Rs 5 crore for each of the last three years)

It may be recalled that some of these are key issues raised by GJEPC with the government.

A number of trade associations have welcomed the government’s decision.

Pic caption: Union Minister for Finance, Corporate Affairs and Defence, Shri Arun Jaitley chairing the 16th Meeting of the GST Council. The Minister of State for Finance, Shri Santosh Kumar Gangwar and the Revenue Secretary, Dr. Hasmukh Adhia are also seen.

Pic courtesy PIB