GJEPC submitted a set of pre-budget proposals to the Government of India in New Delhi on 7th November, aimed at improving ease of doing business and boosting exports. The Council proposals were put forth by Mr. Kirit Bhansali, Chairman, GJEPC; Mr. Anoop Mehta, Convener – Diamond Panel; Mr. K. Srinivasan, Convener – Gold Panel, GJEPC; and Mr. Sabyasachi Ray, Executive Director, GJEPC.
Key proposals include a liberalised taxation framework for rough diamond trading in Special Notified Zones, on the lines of other international diamond trading hubs like Israel, Dubai, Belgium, etc., and an extension of the customs duty exemption on lab-grown diamond seeds beyond March 2026 to support India’s fast-growing LGD industry.
GJEPC also sought retrospective applicability of the ±0.01 mm height variance parameter (2014-2025) for re-imported diamonds sent for certification/grading, ad-valorem duty drawbacks for gold and silver to reflect rising prices, and inclusion of platinum jewellery and gold articles in the drawback scheme.
To attract foreign tourists, the Council recommended a comprehensive tax refund mechanism covering GST, Basic Customs Duty, and Agriculture Infrastructure and Development Cess (AIDC), supported by digital integration and refund counters at airports.
Further, the Council proposed flexibility for SEZs to allow reverse job work, domestic sales on duty payment, and ‘Bill to, Ship to’ procurement to streamline logistics.
Other suggestions included reducing import duty on cut and polished diamonds and coloured gemstones from 5% to 2.5%, abolishing duty on rough gemstones, and raising personal carriage limits for overseas exhibitions and business tours.
Highlighting industry challenges, GJEPC urged relief from transfer pricing penalties under Section 271G, citing razor-thin profit margins and judicial precedents supporting the industry’s compliance approach.