A delegation of The Gem & Jewellery Export Promotion Council (GJEPC) met with Hon’ble Minister of State for Finance, Government of India, Shri Jayant Sinha during his visit to Mumbai today and discussed certain key industry-related policy issues.

In a presentation to the minister, the delegation drew his attention to the current difficult situation facing the industry. It also covered the following:

Operational / Taxation Issues at SNZ: Appropriate notification to be issued permitting foreign mining companies for display and auction of rough and clarifications on some Direct Tax Propositions in the case of sale of rough at SNZ

Implementation of Turnover Tax for Diamond Sector: Macro-economic and fiscal benefits of such a tax regime were presented to the minister, including the higher tax collection that would result from it.

Others: Request for Non-imposition of Levy of Penalties for Non-Maintenance of adequate Tranfer Pricing records, and for reintroduction of 2% interest subvention on rupee export credit which was withdrawn in 2011.

Differentiation of synthetic diamonds: Suggestions regarding proposed regulatory solutions for such as separate HS Code, differential Customs structure, VAT and Excise were also placed before the minister.

In conclusion, the Council also said that it has recently formed a Committee with important domestic jewellery associations in the country and will be preparing a presentation on the implications of proposed GST on the gem & Jewellery sector which will be presented to MoF shortly.