Central Government exempts Gem, jewellery exporters from 3% IGST
Central government has accepted the Gem and Jewelry Export Promotion Council’s (GJEPC’s) demand to grant IGST related exemption on the supply of gold by nominated agencies to exporters of articles of gold.
The GST Council recently announced that gem and jewellery exporters will no longer have to pay the 3 per cent Integrated Goods and Services Tax (IGST) to nominated agencies (banks) from January 1, 2019, said Pramod Kumar Agrawal, Chairman, GJEPC. He said the GST Council found it necessary to exempt the intra-State supply of gold as per the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when supplied by the nominated agency under the scheme for “Export Against Supply by Nominated Agency”.
“We are also expecting a similar relief to the exporters of articles of silver and platinum.” He said the upfront payment of IGST and import duty in the form of bank guarantee had led to huge working capital blockage for various small and medium jeweler exporters, increased interest cost, and hassles of compliance to claim refund, consequently impacting their business operations and global competitiveness.