GST revision in rough diamonds welcomed, seeks 5% labour levy abolishment

Welcoming the Goods and Services Tax (GST) Council’s decision to revise the three% tax on one of the varieties of imported rough diamonds to 0.25%, the Gems & Jewellery Export Promotion Council (GJEPC) has sought additional benefits.

Since its rollout in July, the GST Act had levied two different rates on revenue from rough diamonds.  Of these, non-industrial or 'gem quality' of rough diamonds attract a rate of 0.25% while industrial and unsorted rough diamonds were levied a three% GST.

These rough diamonds have been globally categories into three codes wherein non-industrial rough diamonds carry the 7102.31 code, which attracted 0.25% GST,