Budget 2026 pitch: Gems and jewellery industry seeks GST cut, duty changes and simpler customs rules
Ahead of the Union Budget 2026–27, industry bodies say high input costs and global headwinds are hitting competitiveness; they want GST rationalisation, import duty reforms and faster, tech-enabled customs clearances to boost exports.
Industry submits pre-Budget asks
India’s gems and jewellery sector has submitted a set of recommendations for the Union Budget 2026–27, seeking changes that would reduce tax and compliance costs and strengthen export competitiveness, according to the report.
The Gem and Jewellery Export Promotion Council (GJEPC) flagged a mix of GST cuts, customs duty rationalisation and policy tweaks. The report says the proposals were shared in a pre-Budget memorandum to Finance Minister Nirmala Sitharaman.
Focus on competitiveness amid global shifts
The report frames the sector’s demands as a response to a changing international trade environment, citing factors such as evolving consumer preferences, global supply-chain shifts and tariff-related pressures in key markets.
One major thrust is improving India’s position in the global diamond trade and value discovery ecosystem, which requires predictable policies and lower friction for export-oriented firms operating at scale.
Customs modernisation and technology
Among operational changes, the GJEPC recommended steps such as risk-based customs clearance, greater use of AI-enabled digital appraisal processes and self-certification for trusted exporters. The aim, as described in the report, is to improve transparency and reduce turnaround time.
The report also notes proposals to align customs procedures more closely with the needs of an export-heavy sector that handles high-value consignments, time-sensitive logistics and complex grading/valuation workflows.
Domestic council’s GST proposal
Separately, the All India Gem and Jewellery Domestic Council (GJC) also made representations, including a call to reduce GST on gold and silver jewellery. The group argued that a lower rate would reduce stress on households and widen the taxed transaction base by improving compliance.
The report mentions other ideas raised by the domestic council such as tax and policy adjustments related to hallmarking and transaction treatment, reflecting a broader attempt to push both consumer-side and exporter-side reforms in Budget 2026–27.