The All India Gem & Jewellery Trade Federation (GJF) has sought 1.25% GST for the gems and jewellery sector as they feel that it will help the industry to become compliant and organised.

In its pre budget memorandum to the finance ministry, GJF has also urged to increase the mandatory PAN card limit to 5 lakhs and above for purchase of gold jewellery. High import duty on gold has been a major issue for the gold trade for quite some time now. This year too, GJF has asked to reduce the import duty on gold from 10% -5% so that gold prices can come down and demand increases in the domestic market.

GJF has pointed that there is an urgent need for the formation of domestic council for gems & jewellery sector to address various domestic issues pertaining to the industry including generation of reliable database and regulation of fair trade practices in the industry and help the government in the formation of industry friendly policies for trading and manufacturing.

The federation has also asked the government to kept the dore import under tight observation to avoid malpractices and no monopoly to be permitted.

GJF has said that though import of gold has presently been confined to banks and nominated agencies but over time more and more agencies should be given opportunity to be enlisted to allow good competition and easy availability of gold across the country.

Sources :economictimes.indiatimes.com