A delegation from the diamond industry including members of the GJEPC and BDB, recently met with senior officials of the Ministry of Commerce & Industry under the Chairmanship of Shri Sunil Kumar, IAS, Joint Secretary, DoC to discuss the issues related to turnover based taxation system for Special Notified Zone (SNZ) and other matters.

The meeting took place in the context of the signing of agreements to enhance economic growth and cooperation between India and Russia during the Hon’ble PM’s recent visit to that country. Formal negotiations for the agreement will start in September 2017, and Jt Sec Shri Kumar, who has been entrusted with the negotiations needed to understand key issues of the gem & jewellery industry.

Shri Kumar along with the delegation visited the IDTC/SNZ to see operations and facilities available at there for rough diamond viewing.

During the meeting, Anoop Mehta said that though India is the major diamond manufacturing hub, rough diamonds come to India through Dubai, Israel etc. since no sale of rough diamonds happens in SNZ.  Until taxation issues are resolved, mining companies would not sell their goods directly in India, he pointed out.

Mehul Shah requested that permission should be granted for manufacturing of cut and polished diamonds within SEZs. He also urged the Jt. Sec. to take up the issue that jewellery imported from India by Russia should be made duty free or at should be at a concessional rate. This would provide a major boost for the industry especially for the finished jewellery manufacturers of India since Russia is becoming an important consuming market for finished jewellery.

The meeting concluded with the Jt Sec requesting the GJEPC to prepare a report on quantum of finished jewellery and polished diamonds being imported from India by Russia along with import duties levied from all possible countries for further analysis and consideration.