If SGST exemption is given to gems & jewellery sector in WB, it would help boost MSMEs: GJF

New Delhi, July 12 (KNN) Under the newly implemented Goods and Services Tax (GST), an exemption for the gems and jewellery industry from the State Goods and Services Tax (SGST) would help boost the industry that comprises of more than 95 per cent Micro, Small and Medium Enterprises (MSME) units, All India Gems and Jewellery Trade Federation (GJF) opined.

The West Bengal government is reportedly considering the SGTS waiver for the gems and jewellery industry in the state, though an official confirmation is yet to come in this regard, the step is being eyed positively by the industry.

Talking to KNN, Ashok Minawala, Spokesperson of GJF explained the concerns of the industry.

He informed that the major share of industry exist in the state of West Bengal. There is huge production of gems and jewellery in the state that caters to the need of the entire country.  Therefore a waiver in the SGST in West Bengal would be a welcoming move.

“Most of the jewellery manufacturing in the country is done by the Karigars (craftsmen) through the large number of gems and jewellery MSMEs in West Bengal; it is a thriving industry with a lot of people dependent on it,” said Minawala.

This move by the government is likely to be in continuation of the provisions that existed under the VAT era. Earlier there was a waiver in the previous tax regime; the government might consider extending the exemption under the GST as well.

He however maintained that the introduction of such provision is yet to be announced. But once its finally implemented, there might be a ripple effect and the industry body might urge other states for similar provisions.

While the IGST and CGST would continue to exist for the sector, the relief from SGST will help maintain the cost of production adding to the overall productivity in the sector, he added. (KNN/ DA)