The Gem & Jewellery Export Promotion Council (GJEPC) has welcomed the GST reforms announced at the 56th GST Council meeting held on 3rd September in New Delhi under the chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The rationalisation of GST rates across industries highlights the Government’s efforts to ease costs, drive domestic demand, and improve India’s global competitiveness.
For the diamond and jewellery industry, the reforms are especially impactful. Imports of natural cut and polished diamonds up to 25 cents under the Diamond Imprest Authorisation Scheme (DIAS) are now exempt from IGST (previously 18%), helping manufacturers and exporters reduce working capital strain in small-diamond processing. Additionally, the GST rate on jewellery boxes has been cut from 12% to 5%, lowering expenses for retailers and exporters while making packaging and gifting more accessible for consumers.
GJEPC Chairman Shri Kirit Bhansali remarked, “We appreciate the GST reforms introduced under the leadership of Hon’ble Finance Minister Smt Nirmala Sitharaman. These measures will stimulate domestic demand and ease the burden on export supply chains facing global headwinds. Our sector is committed to ensuring that the benefits, such as reduced jewellery box costs, are passed on to consumers, strengthening trust and long-term growth.”
The reforms, along with GST reductions in related sectors like handicrafts, leather, and packaging, are expected to further fortify India’s jewellery ecosystem by cutting operational costs, boosting affordability, and enhancing global competitiveness.
GJEPC acknowledged the Government’s collaborative approach and expressed confidence that these measures will generate broad-based benefits, supporting both domestic expansion and export resilience in the Indian gems and jewellery sector.