Budget 2025: Will The Government Cut GST From 3% To 1% On Jewellery, Gems?
Budget 2025 Expectations: The gems and jewellery sector has intensified its plea to the government, urging a substantial reduction in the Goods and Services Tax (GST) rate to 1 percent on revenue equivalence ratio in the upcoming budget. The industry argues that the current GST rate poses a significant cost burden, hindering its competitiveness and impacting employment within the sector.
Industry’s Call for Tax Rationalisation
“We seek rationalisation of taxes and availability of finance to support business," the All India Gem and Jewellery Domestic Council (GJC) Chairman Rajesh Rokde said in a statement on Tuesday.
‘Impact of High Gold Rates on GST’
He said that with the continuously increasing gold rates, the current GST rate is increasingly becoming a burden for the industry and end customers.
Appeal for GST Reduction on Gold
Therefore, Rokde said GJC is urging a reduction in GST from the current 3 percent to 1 percent in the upcoming Budget, which will encourage compliance.
