A GJEPC delegation led by Chairman, Vipul Shah met Commerce Secretary, Government of India, Rajeev Kher on October 17 and had detailed discussions on a number of issues of concern to the industry. The delegation also included Council’s Northern Regional Chairman, Anil Sankhwal and Executive Director, Sabyasachi Ray.

At the outset, the delegation apprised the CS on plans and preparations for the World Diamond Conference to be held at Vigyan Bhavan, Delhi in mid-December and was assured of complete support from the Commerce ministry and the highest levels of the government.

Discussions were also held on developing an appropriate system of direct taxation such as a Turnover tax, and the delegation informed the government that Council has already commissioned a study by PwC which would look at systems prevalent in other countries and industries and make detailed recommendations on that basis.

Besides this, the CS was also requested to expedite a final decision on whether Customs Duty or Service Tax was payable on purchase of operating software for diamond processing machines, as both concerned departments have been making claims on diamantaires. Similarly, the CS was also urged to take appropriate measures in the context of Council’s recommendations for consignment import of diamonds and creation of a Special Notified Zone for Diamond Viewing Facility, strategy for enhancing India’s Jewellery Exports from the SEZs and issues related to bank finances.

The government was urged to include the Gems and Jewellery Sector under Interest Subvention Scheme. The delegation also requested government that RBI should grant banking license to ABN AMRO BANK NV, the world’s largest lender to diamond industry, so it could open branches in the country.

The Commerce Secretary has invited the GJEPC to make a more detailed presentation on the issues discussed to facilitate incorporation in next year’s Budget and other policy documents. The presentation is expected to take place in the third week of November.