GJEPC Chairman, Colin Shah made a presentation to Hon’ble FM on the critical issues concerning the gem and jewelry industry. The GJEPC’s vice Chairman Vipul Shah and executive director Sabyasachi Ray were also present in the video meeting.
Critical Issues Concerning Gem & Jewellery Industry
GJEPC’s leadership presented concerns related to e-commerce policy and mandatory MyKYCBank platform for all gem and jewelry entities. Furthermore, they requested clarification on the Online Equalization levy for B2B international diamond auctions. Apart from these concerns over the sale of rough diamonds in India by miners to Special Notified Zones ( SEZs) were raised.
Self- Reliance to Strengthen the Industry
GJEPC Chairman Colin shah emphasized on measures and reforms to strengthen the industry while making it self- reliant. The council has made representations that would facilitate the industry. It emphasized on unleashing its potential both in terms of export growth and employment in the sector. It also stressed on the need for a dedicated system-driven fast Track Customs Clearance of shipments for the gems and jewelry goods valued below US $ 800. Apart from these, the council has proposed direct sale of rough diamonds by miners in Special Notified Zones( SNZ) in India. The council requested FM for an invoice within the SNZ if Indian customers choose to confirm their orders.
Gem & Jewellery Industry as Priority Sector
Furthermore, the council urged the government to grant the gem and jewelry sector as a priority sector. GJEPC Vice Chairman raised concerns over the limited financial support extended by the private banks. He further urged to reduce polished diamond import duty from 7.5% to 2.5%. It will help India to strengthen its status as a polished diamond hub.
On gold monetization
Retailers can get jewelry from a consumer with KYC and confirm the pure gold weight in terms of 995. The retailer should give RBI authorized dealer’s certified gold/digital in the denomination of 100/500/1000 gms along with a certificate.RBI can fix the compounding interest rate based on tenure. Compound interest accrued would be added in terms of gold on the maturity of the deposit period. RBI can give the gold deposited by the customers to the banks in place of banks getting a gold loan from foreign suppliers and RBI can charge interest for it accordingly.
Suggestions for the development of SEZs into economic employment enclaves
SEZ units will do the job while following certain safeguards and on payment of GST on labor charges.