New Delhi, Sept 5 (KNN) The Gems and Jewellery industry comprising of a fair share of the Micro, Small and Medium Enterprises (MSMEs) is concerned over the suggestive data hinting towards a decline in the exports from the sector in the financial year 2017-18.

Talking to KNN, Ashok Minawala, Spokesperson of All India gems and jewellery trade federation informed that the suggestive decline in the exports is due to a number of reasons.

The Goods and Services tax (GST) introduced by the government earlier is one of the prime reasons for the decline in import interests of the global buyers. The agencies that procured gold from India by large have decreased their imports due to the complication under GST.

Because of the GST, a lot of working capital remains blocked as there are multiple layers at which the importer is supposed to credit and then apply for the reimbursement, which worsens the situation.

While GST is one of the reasons, Minawala added that it alone is not the factor behind the slowed exports. Also the global gold market is not in the best shape because of which the Indian exports too are likely to be hit.

Earlier, Sabyasachi Ray, Executive Director of The Gems and Jewellery Export Promotion Council (GJEPC) in a press interview raised similar concerns over the expected decline in the exports from the country.

He informed that the gold and jewellery exports have sharply declined by over 30 per cent in comparison to the previous year. Citing the reasons, he asserted that the importers of gold find it all the more difficult under the GST as the gold importers first need to deposit the applicable I-GST and then they need to remit it. This complication is one of the prime reasons for the shift in the figures.

2017-28 is likely to be hit with poor export figures also because of the GST levied on the job work in the industry, against which different gold and jewellery associations have repeatedly urged the Ministry to consider exemption. (KNN/ DA)