GST Reforms Bring Big Relief to Diamonds and Jewellery Sector: GJEPC

The Gem and Jewellery Export Promotion Council (GJEPC) on Friday said GST reforms have brought significant relief to the diamonds and jewellery sector.

The government's decision to exempt imports of natural cut and polished diamonds up to 25 cents under the Diamond Imprest Authorisation Scheme (DIAS) from IGST (previously 18%) will ease working capital pressures and support manufacturers and exporters engaged in small-diamond processing, it said.

In addition, the reduction of GST on jewellery boxes from 12% to 5% will lower costs for retailers and exporters, while making packaging and gifting more affordable for consumers - benefiting both businesses and buyers alike.

"These measures will stimulate domestic demand and provide a cushion to our export supply chains, which are under pressure due to global challenges," GJEPC Chairman Kirit Bhansali said.

The diamonds and jewellery sector remains committed to ensuring that the benefits, including reduced costs for jewellery boxes, are transparently passed on to Indian consumers, reinforcing trust and supporting long-term industry growth, he said.

These reforms, combined with GST reductions in allied sectors such as handicrafts, leather goods, and packaging, will further strengthen India's diamonds and jewellery ecosystem.

By lowering operational costs, enhancing affordability, and boosting global competitiveness, they reinforce India's position as a leading hub for diamond processing, jewellery design, and exports.

GJEPC is confident that these measures will deliver broad-based benefits, supporting both domestic growth and export resilience for the Indian diamonds and jewellery sector, the statement added.