All India Gem and Jewellery Domestic Council (GJC) has sought a reduction in Import Duty on Gold as per of its pre-Union Budget recommendations. GJC Chairman and delegation submitted the pre-Budget recommendations to the Hon. Union Finance Minister. The indigenous Gem & Jewellery industry is predominantly hand crafted and labor intensive. Over 1 crore skilled labor force is engaged in manufacturing of jewelry in the domestic sector.
Anantha Padmanaban, Chairman, GJC, said, “The 10% Import Duty on gold was
levied to curb Current Account Deficit. However, India’s trade deficit narrowed
to 2.5% of GDP in 2019.Reduction in the gold duty will directly reduce other
social & economic menace in the country.GJC has suggestions to make the Gold
Monetary Scheme more effective and benefit the government and citizens at
large. GJC has proposed key customer-friendly initiatives such as exemption
from Capital Gains; enhancement of cash limits and PAN Card limits; extension
of EMI facility and availability of NEFT/RTGS on weekends.”
unlock family gold reserves of up to 24,000 tonnesand help reduce CAD, GJC urged
that Government must give exemptions to households for minimum 500 grams of
gold deposited under Gold Monetary Scheme (GMS), being of ancestral nature,
frombeing questioned by any tax department.
Shaankar Sen, Vice Chairman, GJC, said “With respect to credit card commission
levied by banks, we have urged the Govt. to waive off the bank commission or
reduce it to 0.20% thus ensuring a good boost to the ‘Digital India’ for the G
& J Industry.
also request the government that in case jewellery sold is reinvested in new
jewellery, the exemption from Capital Gain as per Section 54F of the Income Tax
Act 1961 should be the extended to G&J Industry. This will help the
industry to move towards organized and compliant business practices.In case of
remaking of new jewellery from old jewellery or old gold, GST is applicable
@18% on labour charges. Due to high rate of GST, the customers are reluctant to
go for this option. The other option left with customer is to sell the old jewellery
and buy new jewellery. However, as there is Capital Gains Tax involved,
customers are hesitant for this option also.”
Keeping in mind the hardships faced by the common man during such crisis, GJC urged that the limit of Rs. 10,000/- per day be increased to Rs. 1,00,000/- per day Currently, the monetary limit on revenue expenditure or purchase limit in cash is Rs. 10,000 per day. Most of the people in Rural India prefer Gold as an Investment and have their savings in the form of Gold. In the case of Medical / financial emergencies, they approach the jeweler to liquidate their savings or investment. But due to provisions contained in Section 40A of the Income-tax Act, a jeweler is unable to make a payment above Rs. 10000/- in cash.
recommends raising PAN card limit from Rs. 2 lakh to 5 lakh. Many households do
not hold PAN cards specially agriculture sector. Hence, they face difficulty in
furnishing the same upon requirement.
urgedthe Government that the facility of EMI should be extended to the Gems
& Jewellery industry since the Finance Minister in the 2018 Budget has
announced as an Asset Class.Currently, loans on purchase of jewellery is being
treated as Personal Loans, where the rate of interest is very high. EMI should
be available for purchase of jewellery and restriction should continue only for
bullion and coins. This will help the industry to move towards organized and
compliant business practices.
the recent past, it has been observed that more transactions are happening
online. Also, most of the buying takes place on Sundays and public holidays
where Banking channels like NEFT / RTGS are not available. GJC urged that the NEFT/RTGS
facility should be available on holidays and Sundays when there is maximum
buying by the customers.
has also sought easier bank financing normsfor small & medium scale
jewellers. GJC requested the Govt. to enable jewellers to sell Ashoka Chakragold
coins through retail stores. This will increase the reach and generate more
sales of the coins.
tax rate for Body Corporate with annual revenue of less than Rs.250 crore a
year was reduced to 25% from 30% in the last Budget. A majority of the players
in the Gems & Jewellery Industry are either Partnership (Including LLP) or
Proprietorship firms. GJCurgeed the Government to extend the benefit of reduced
Income tax rate to even Partnership (Including LLP) or Proprietorship firms. In
order to promote manufacturing in this sector and support ‘Make in India’
initiative of Government of India, jewellery manufacturing machines import duty
should be 0%.