New Delhi, Jan 6 (KNN) The gems and jewellery sector comprising of a fair share of Micro, Small and Medium Enterprises were impact more by the Prevention of Money Laundering Act than the new taxation in the country, All India Gems and Jewellery Trade Federation informed.

Reviewing the performance of the sector in 2017, Nitin Khandelwal, President of All India Gems and Jewellery Trade Federation (GJF) told that like other sectors even the gems and jewellery business experienced a slowed demand.

Khandelwal said that the year 2017 had been full of transformations be it the footprints of demonetization or the implementation of the Goods and Services Tax (GST).

With regard to the PMLA notification that required the dealers in precious metals, stones and other high-value goods, to maintain a record of all transaction of value exceeding Rs10 lakh and all cross-border wire transfers of more than Rs5 lakh, added to the stress on the sector.

Also, the sale of gold above Rs.50, 000 required customers to furnish PAN (permanent account number) or Aadhaar card to the jeweler under the notification.

However the government later revoked the act, which brought relief to the sector, Khandelwal added.

Stating rough estimates of the business statistics for the year 2017, he informed that the sector experienced a dip in sales by over 25-30 per cent.

“Even the festive seasons such as Diwali did no good to the market, demand continued to remain meager”, he added.

Commenting over the new taxation, Khandelwal said that GST is to yield positive impact on the sector as things are beginning to settle in.

“With things normalizing, the sector expects a ‘back on track’ business in the new year”, he further said. (KNN/ DA)