New Delhi, Jan 29 (KNN) Gems & jewellery industry has sought reduction of import duty on cut and polished diamonds as well as on cut and polished gemstones from 7.5% to its earlier level of 2.5% in the upcoming interim Budget 2019.

The Gems & Jewellery Export Promotion Council (GJEPC) has sought government support in ensuring ease of doing business, in order to help exporters to enhance exports in 2019-20.

In its pre-budget wish-list enumerating the various policy changes necessary for its further growth, the organisation also asked that 5% of the FOB value of exports of cut & polished diamonds in the preceding licensing year should be allowed to be re-imported duty free by exporters.

“As part of the comprehensive gold policy on the anvil, GJEPC seeks reduction of import duty on gold from 10% to 4%”, added GJEPC.

The Council also urged the government to change income tax regulations to enable foreign mining companies to sell rough diamonds through the Special Notified Zone, thus paving the way for the enhancement of global and bilateral trade.

The GJEPC reiterated a long time demand of the industry -the introduction of presumptive taxation system for diamonds and gemstones in India.

“The introduction of Presumptive Taxation would not only increase the ease of doing business of diamantaires but also encourage diamantaires from across the world to start operations in India as against other preferred destinations such as Belgium, UAE and Hong Kong,” the GJEPC explained.

 A level playing field in India is absolutely essential for making India a global hub for gems & jewellery, the council added.

The GJEPC also exhorted the government for a segregation of ITC HS Code for both rough lab grown diamonds and other synthetic stones to provide for the clear differentiation between natural and lab-grown diamonds. 

The organisation is seeking exemption from payment of IGST on re-import of goods exported during overseas exhibitions/consignments/ export promotion tours. “Such amendment should be done retrospectively to protect exporters from harassment,” the GJEPC stated.

Further, the Council urged the GST authorities to notify a GST rate of 0.25% on input services (at least job work services and grading and certification services) and extend the benefit of the inverted duty structure to such services as well.

The GJEPC asked for a conducive banking environment for exporters of gems and jewellery sector in terms of relaxing credit norms for working capital requirements.

For this, it urged the government to relax credit norms for working capital requirements; and o introduce interest subvention of 5% on export finance for the gem & jewellery sector.

Besides, it requested for the introduction of a job work policy in the gems and jewellery industry,

“Similar enabling policy for such a job work model for diamond business needs to be introduced as it is available to all other sectors,” the GJEPC stressed.

Also, council requested the government to adopt Standard Operating Procedures (SOP) for apprising exports and imports which contains the tolerance range as per justified norms adapted the trade during their regular business.