Ahead of Union Budget 2026–27, gems and jewellery industry seeks GST cut and duty rationalisation
India’s gems and jewellery sector has urged the government to cut GST and rationalise customs duties in the Union Budget 2026–27, arguing that reforms are needed to boost exports and competitiveness amid global demand uncertainty. Industry voices say predictable taxation and easier compliance could help strengthen India’s position in a major employment and export-linked sector.
With the Union Budget 2026–27 approaching, India’s gems and jewellery industry has stepped up its pitch for policy changes, urging the government to cut the Goods and Services Tax (GST) rate and rationalise customs duties to improve export competitiveness and support growth.
Industry representatives argue that the sector—one of India’s major export earners and a large employer—needs a more stable and internationally competitive tax and duty structure, particularly as global trade conditions remain uncertain and buyers become more price-sensitive.
Among the key demands are GST reductions and reforms that simplify compliance and reduce friction in supply chains. Stakeholders also want duty changes that lower input costs and improve margins, especially for export-oriented businesses that face tight timelines, working-capital cycles and fluctuating commodity prices.
The push reflects a broader pre-budget pattern in which sectors with deep MSME linkages seek targeted relief and clarity, arguing that small manufacturers and job-intensive clusters feel the pressure first when demand slows or when compliance costs rise.
While the government has emphasised manufacturing and exports through recent years, any GST or duty change has to be balanced against revenue considerations and the need to keep tax administration stable. The industry hopes the Budget will use incremental steps—rather than disruptive overhauls—to nudge competitiveness without creating uncertainty.