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Govt excuses exhibition ornaments from 3% IGST

In a major relief to India’s gems & jewellery sector, the government has exempted exhibition jewellery from 3% Integrated Goods and Services Tax (IGST). The move would benefit nearly 25% of the country’s yearly return (unsold) consignments of gems and jewellery exports. While India’s annual gems and jewellery exports are stated to be about US$ 35 billion, the return consignments are estimated to be worth US$ 7-8 billion. The Ministry of Finance has further clarified that since such an activity is not a supply, it cannot be deemed as “zero rated supply‟ as per the existing IGST provisions.

Pramod Kumar Agrawal, Chairman, Gem and Jewellery Export Promotion Council said “This is a trade-friendly step which will boost promotional activities globally. The move will definitely provide respite to our member exporters.”