Around 94% of polished diamond to benefit from lower GST rate of 0.25%

Apart from freeing up blocked working capital, move will help overcome ambiguity in tax structure and avoid mis-declaration and tax evasion

The sharp cut in the rate of GST (Goods and Services Tax) on polished diamond has brought much cheer to processors and jewellery exporters.

Around 94 per cent of the diamonds processed in the country would attract 0.25 per cent GST effective Friday, down from three per cent earlier, following the GST Council's decision in this connection on Thursday. The remaining six per cent of diamonds processed in India and sold directly to consumers, however, would continue to attract three per cent GST.

The Council's decision comes as a major relief for diamond processors and the entire value chain, including