Surat: The leaders of the Gem and Jewelery Export Promotion Council offered to central ministers to reduce the duty on diamonds in the budget.

A delegation of GJEPC, led by Vijaybhai Mangukia, President, Gem and Jewelery Export Promotion Council, GJEPC, Gujarat, and Dineshbhai Navadiya, President, IDI, visited Delhi. Rajatbhai Vani and Manishbhai Kapadia of GJEPC also attended. In Delhi, the delegation personally met Union Ministers Parshottambhai Rupala, Darshanaben Zardosh and Mansukhbhai Mandaviya and made an effective proposal to meet some other demands of the diamond and jewelery industry in the next budget.

Purushottambhai Rupala, Darshanaben Jardosh and Mansukhbhai Mandaviya warmly responded to the presentation made by the GJEPC delegation and assured to do the right thing in the concerned minister and authority to resolve the various questions and issues related to the diamond and jewelery industry at the earliest gave. Some more figures have been sought on the exact impact of the equalization levy. Accordingly GJEPC will collect all the data on this issue and submit it afresh at the earliest.

Darshanaben Zardosh informed the delegation that she was already aware of the matter and had spoken to the concerned authorities. Mandaviya discussed the matter in detail and understood all the aspects. He informed that he would study the matter more deeply and assured to take up the matter with the concerned authorities. Thus the visit of the GJEPC delegation to Delhi and the meeting with the royal dignitaries was very fruitful.

Demand to make provision for reducing diamond import duty in the budget

Surat is known worldwide as the Diamond Hub. Diamond polishing units are facing difficulties due to high import duty on rough diamonds and some inconsistent policies. Therefore it was also submitted that GJEPC is expecting to announce some relaxations in the next budget 2023. Special duty exemption should be given on import of diamonds.

Vijay Mangukia, Gujarat Region Chairman, Gem and Jewelery Exports Promotion Council (GJEPC), said that the diamond and jewelery industry is expecting a lot from this Budget 2023. We have reduced the import duty on cut-polished diamonds to 2.5 per cent from the existing 5 per cent. Similarly, we are looking forward to reducing the import duty on precious metals like gold, silver and platinum from 12.5 per cent to 4 per cent.

These are the main demands and presentations of the diamond industry

• Reduce import duty on cut and polished diamonds from 5 per cent to 2.5 per cent.
• Allow sale of rough diamonds in special notified areas.
• Explain the exemption from 2 percent equalization tax (levy) on the sale of rough diamonds. Diamond Impress License to an exporter of CPD against export obligations
• Allows to import a specified quantity of CPD. Import duty abolished on seeds used to make diamond in laboratory (labgrown), diamond in laboratory
• Remove duties on imports of machinery used in manufacturing. Import duty on cut and polished gems (coloured diamonds) to be reduced from 5% to 2.5%.
• Import duty on precious metals like gold/silver/platinum to be reduced from existing 12.5% ​​to 4%.
• Introduce “Rate and Tax Refund” mechanism through EDI system similar to GST refund.
• The rate of duty drawback at the time of GST refund should be in line with the export import duty.
• Basic customs duty on gold/silver/platinum jewelery to be increased from existing 20 per cent to 25 per cent.