Union Budget 2025 / Demand to reduce GST on gold and diamonds, will help in reducing the price of jewellery

Union Budget 2025: On February 1, Finance Minister Nirmala Sitharaman is going to present the Union Budget 2025-26 in Parliament. For this, representatives of various sectors are meeting her and placing their demands. In this regard, the gems and jewelery industry has given many important suggestions to the government, which aim to solve the problems of the industry and accelerate its development.

Demand to reduce GST

Rajesh Rokde, Chairman of the All India Gems and Jewelry Domestic Council (GJC), issued a statement saying that the GST implemented at the current rate of 3% is taking a toll on the industry. He has appealed to reduce it to 1%. He believes that this will not only reduce the cost of the industry, but will also increase the purchasing power of customers, especially in rural areas, to purchase jewelery.

He also said that reducing the GST rate will improve compliance in the industry and increase the scope of the formal economy. This is also likely to increase the revenue collection of the government.

Suggestion to reduce gold prices

The rising prices of gold have raised concerns for the jewellery industry as well as customers. To address this issue, GJC has urged the government to make the Gold Monetisation Scheme more effective. This will bring unused gold domestically into the economy, helping the country to become self-reliant and reduce dependence on imports.

Concession for laboratory-made diamonds

GJC has demanded a special concessional GST rate on laboratory-made diamonds. He says that these diamonds can be a sustainable and affordable alternative to natural diamonds. In such a situation, an incentive scheme will boost their demand and give the industry a chance to move forward with new possibilities.

Demand for special ministry and EMI option

The council has appealed to set up a dedicated ministry for the jewellery industry. Also, he has suggested appointing a state-wise nodal office and a Union minister. Apart from this, the old demand of providing EMI (payment in installments) facility for jewellery purchase has also been reiterated.

Jammu and Kashmir Chief Minister meets Finance Minister

Jammu and Kashmir Chief Minister Omar Abdullah also met Finance Minister Sitharaman regarding the Union Budget. This meeting held in North Block lasted for about 30 minutes. The Chief Minister discussed the budgetary priorities related to the state. This is the second meeting between Omar Abdullah and the Finance Minister within two months.

Discussions continue with various parties

Finance Minister Nirmala Sitharaman is holding continuous meetings with various industries, states and stakeholders as part of budget preparations. It is being ensured that the needs and challenges of every sector are taken into account in the budget.

Conclusion

The gems and jewellery industry has submitted its suggestions regarding the budget, which focus on tax rationalisation, gold monetisation, and customer-facilities. Now it remains to be seen to what extent these demands get a place in the upcoming budget. This can play an important role in the future and economic development of the industry.