GST Changes Bring Significant Relief to Diamonds, Jewellery Industry: GJEPC

The Gem and Jewellery Export Promotion Council (GJEPC) on Friday said recent GST reforms have provided much-needed relief to the diamonds and jewellery industry.

The council welcomed the government’s decision to exempt imports of natural cut and polished diamonds up to 25 cents under the Diamond Imprest Authorisation Scheme (DIAS) from IGST, which was earlier levied at 18 per cent.

According to GJEPC, the move will ease working capital pressures and provide strong support to manufacturers and exporters engaged in small-diamond processing.

Additionally, the reduction of GST on jewellery boxes from 12% to 5% is expected to lower costs for retailers and exporters, while making packaging and gifting more affordable for consumers, benefiting both businesses and buyers.

“These measures will help stimulate domestic demand and provide support to our export supply chains, which are currently under pressure due to global challenges,” said GJEPC Chairman Kirit Bhansali.

He added that the diamonds and jewellery sector is committed to ensuring that the benefits, including reduced costs for jewellery boxes, are transparently passed on to Indian consumers, reinforcing trust and promoting long-term industry growth.

Bhansali noted that these reforms, combined with GST reductions in allied sectors such as handicrafts, leather goods, and packaging, will further strengthen India’s diamonds and jewellery ecosystem.

“By lowering operational costs, improving affordability, and enhancing global competitiveness, these measures reinforce India’s position as a leading hub for diamond processing, jewellery design, and exports,” he said.

The GJEPC expressed confidence that these measures will bring broad-based benefits, supporting both domestic growth and export resilience in India’s diamonds and jewellery sector.

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