The Gem & Jewellery Export Promotion Council (GJEPC) has welcomed the series of GST adjustments unveiled at the 56th Council meeting on 3rd September in New Delhi, chaired by Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The Council described the reforms as a progressive step that will stimulate demand, reduce cost burdens, and sharpen India’s edge in global trade.
For the gems and jewellery industry, the reforms are particularly impactful. Imports of natural cut and polished diamonds of up to 25 cents under the Diamond Imprest Authorisation Scheme (DIAS) will now be exempt from the earlier 18% IGST—providing crucial breathing room for manufacturers and exporters who specialise in small-diamond processing. In addition, the GST rate on jewellery boxes has been reduced from 12% to 5%, making packaging more affordable for retailers, exporters, and end consumers.
GJEPC Chairman Shri Kirit Bhansali remarked, “The GST rationalisation under the Finance Minister’s leadership will cushion export supply chains at a time when they face intense global pressures. By passing on the benefit of lower packaging costs to customers, the industry will continue to build consumer confidence and support long-term growth.”
The reforms also extend to complementary sectors such as handicrafts, leather goods, and packaging, collectively reinforcing India’s position as a global hub for jewellery design, diamond processing, and exports. By reducing operational costs and boosting affordability, these measures are expected to give both domestic and international markets a lift.
Acknowledging the government’s consultative approach, GJEPC expressed optimism that the reforms will deliver wide-ranging gains, driving both export resilience and domestic consumption.