Coimbatore Jewellery Manufacturers Seek Higher Cash Payment Limits and Duty Refunds

ENA State 2024-10-14 14:41:38 Coimbatore, Oct 14 (KNN) In a significant push for policy amendments, the Coimbatore Jewellery Manufacturers Association has urged the Union government to allow cash payments of up to Rs 2 lakh for customers selling old gold jewellery. At the Associations annual meeting on Sunday, members also called for a higher cash limit for jewellery purchases, seeking an increase from the current Rs 2 lakh to Rs 5 lakh. The manufacturers emphasised that these changes would provide more flexibility to both customers and businesses, easing liquidity in the gold trade. Allowing higher cash transactions will boost market sentiment and accommodate the cultural buying habits of consumers, especially in regions where cash transactions are still preferred, a representative from the Association said. Another key demand was the refund of the 9 per cent import duty on gold metal loans. The Association pointed out that since the government has recently reduced the import duty on gold, manufacturers who availed gold loans under the previous higher duty structure should receive a refund for the difference. They also urged the government to amend the MSMEs Act to recognise vendor-payment agreements with specific time limits, simplifying financial operations for businesses. In a bid to support small and medium enterprises, the Association recommended that MSMEs repaying loans on time be entitled to a 3 per cent interest refund. It further called for the reduction of GST on gold and diamond jewellery from 3 per cent to 1.5 per cent to make Indian jewellery more competitive in domestic and international markets. The Association also stressed the importance of market exposure for small manufacturers and urged the Ministry of MSMEs to organise industrial visits to both domestic and overseas facilities. These visits, it said, would foster innovation and efficiency within the industry. On a state level, the manufacturers appealed to the Tamil Nadu government to reduce electricity charges for jewellery units. With energy being a major operational cost, such a move would provide relief to small-scale manufacturers and strengthen the sector's competitiveness. The Coimbatore jewellery industry, known for its craftsmanship and exports, plays a crucial role in Tamil Nadus economy. The Association's proposals reflect both short-term financial relief needs and long-term strategic initiatives aimed at fostering sustainable growth in the jewellery sector. (KNN Bureau) 39583 https://knnindia.co.in/news/newsdetails/state/coimbatore-jewellery-manufacturers-seek-higher-cash-payment-limits-and-duty-refunds 2024-10-14 14:41:38 knnindia.co.in Coimbatore Jewellery Manufacturers Seek Higher Cash Payment Limits and Duty Refunds