Entire currency in circulation from Dec 31 legitimate: Jaitley
Union Finance Minister Arun Jaitley said that from Saturday onwards, the entire currency in circulation will be legitimate, Friday being…
The gems and jewellery
industry in the country wants the government to reduce the proposed four per
cent Goods and Service Tax (GST) for gems and jewellery sector to 1.25 percent,
if the latter wants the entire industry to be “organised and compliant”.
All India Gems and Jewellery
Trade Federation (GJF) Chairman G.V. Sreedhar claimed that 1.25 per cent GST
will generate more tax revenue than what the current tax system is generating.
“There is one per cent
of VAT (value added tax) on jewellery across the country. In addition, there is
excise duty of one per cent that is applicable to just 10-15 per cent jewellers
with manufacturing turnover of Rs.10 crore, so about 85 per cent jewellers do
not come under excise duty purview,” Shreedhar said.
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“GST will be applicable
for the revenue threshold at Rs.20 lakh, bringing almost all under its purview.
In our analysis, we have found that 1.25 per cent of GST will contribute more
than what one per cent VAT and one per cent excise duty combine together is
contributing. We do not want the government to lose its revenue, but our
industry should also not suffer,” he said.
Shreedhar said about 75 per
cent of the sector is still not organised. “We want the sector to be
organised.”
According to sources, a
delegation of GJF officials met Union Finance Minister Arun Jaitley to
highlight various concerns of the sector including the GST.
A jewellery shop owner in
Karol Bagh asserted that higher GST will force the jewellers to resort to tax
evasion and black marketing. He claimed that it will further add to the
non-compliance.
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