Gem and Jewellery Export Promotion Council of India came out with a stronger proposal last week. During the COVID-19 widespread where all industries are barely surviving at the edge as disclosed by Indian export data. But, GJEPC has proposed bigger plans. Without a doubt, the forecast growth in sales/export of rough diamonds as per the GJEPC's calculation will be proven beneficial. However, the Government of India may find it challenging to meet this proposal's conditions due to the possibility of a great depression in the upcoming years. 

To begin with, last year, India exported gems and Jewellery with a total worth of $29.07 Billion. Among this counting, polished and cut diamonds' worth was $18.66 billion. So, what's the proposal made by the Gem and Jewellery Export Promotion Council of India? According to the recent reports, GJEPC has requested the reformation of the taxation provisions, particularly on the sales of rough diamonds. Not only this, but the council has also spoken in favor of a 2% equalization levy (direct tax) for the mentioned sales. 

To the reader's surprise, the recommendations made by the GJEPC suggests the inevitable growth of Indian Export data concerning Gems and Jewellery. Statistics say that by succeeding in attaining provisions and relaxation from the Government, Gems and Jewellery's export will increase up to $70 Billion. The final results are quite surprising. 

It is no longer hidden the Indian Economy has started to suffer. During such a situation, any financial benefit will attract the Indian Government to make a move. Cybex Exim, the top-leading India foreign trade data expert team, also probed the given statistics. And the results were surprising. It is indeed true that by applying the GJEPC's suggested export strategy, in the next 5 years, import duty for diamonds will decline by 5%. It means that from the current import duty (7.5%), 2025 will be at 2.5%. 

Does this stand in favor of the Government? 

The answer is No! Gem and Jewellery Export Promotion Council of India has planned to involve SNZ (Special Notified Zone) in Mumbai, Maharashtra, in the import-export and foreign trade data plan. As per the plan, all the bills for Gems and Jewellery sold online will be created by SNZ. Not only this, but the miners will be obligated to pay a 0.16% turnover tax. In this way, the traders will no longer have to face the loss that comes through EL Tax investigated by Mr. Colin Shah, the council's Chairman.