Editor’s Note
This article clarifies that the new two-slab GST structure will not affect gold and silver, as their tax rate remains unchanged at 3%.
It is important to note that the GST rate on gold and silver remains unchanged at 3%. Experts say the new two-slab GST structure will not affect these precious metals. They are placed in a separate category, which already has a special rate of 3% applied.
However, the Gem & Jewellery Export Promotion Council (GJEPC) states that the GST reforms have provided significant relief to the diamond and jewelry sector. A statement said the government has decided to exempt the import of natural cut and polished diamonds up to 25 cents under the Diamond Imprest Authorization Scheme (DIAS) from IGST. Previously, an 18% IGST was applicable. This step will reduce working capital pressure and help small diamond processors and exporters.
Additionally, reducing the GST on jewelry boxes from 12% to 5% will lower costs for retailers and exporters. Meanwhile, packaging and gifting will become more affordable for consumers. This will benefit both businesses and buyers.
These reforms, combined with GST cuts in related sectors like handicrafts, leather goods, and packaging, will further strengthen India’s diamond and jewelry ecosystem. By reducing operational costs, enhancing affordability, and promoting global competitiveness, they reinforce India’s position as a leading hub for diamond processing, jewelry design, and export.