New Delhi, July 4 (KNN) Gem and Jewellery Export Promotion Council's (GJEPC) Chairma Pramod Agarwal has urged the government to speed up the refund process as the jewellery industry is facing an issue of non realization of Goods and Service Tax (GST) paid.

The industry body GJEPC in its statement said that the 3 percent Goods and Services Tax (GST) on exporters for procuring gold from nominated agencies is hampering jewellery exports from India.

Concerned about this, GJEPC Chairman Pramod Agrawal said that the government has given relief to nominated agencies for not paying IGST upfront on gold import on submission of bond.

But there is still implication of 3 percent GST on the exporter for procuring gold from nominated agencies which from time to time the council has represented to government. This is hampering gold jewellery exports from India, he added.

The sector is a 41 billion USD export industry and it contributes 7 percent to the country's economic growth and 15 percent to exports, he added.

"GST rates for gold jewellery remained at 3 percent and as a result, excluding the exports of SEZ which doesn't fall in the ambit of GST, the gold jewellery exports from domestic tariff area has seen a reduction," he added.