Ahead of Union Budget 2026-27, gems and jewellery sector seeks GST cuts, customs reforms and export-boosting measures
India’s gems and jewellery industry has submitted pre-Budget proposals seeking GST rationalisation, customs duty changes, and policy reforms aimed at improving export competitiveness amid shifting global trade conditions. Industry bodies say reforms could lower costs, streamline processes and strengthen India’s position in the global value chain.
What the industry is asking for
As the Union Budget 2026–27 approaches, industry bodies from the gems and jewellery sector have urged the government to consider a set of tax and policy changes, including GST cuts and customs duty rationalisation. The proposals were outlined in a pre-Budget memorandum submitted to the finance ministry, with a focus on keeping Indian exports competitive amid global headwinds.
The Gem and Jewellery Export Promotion Council (GJEPC) pushed for measures aimed at lowering exporter costs, improving Special Economic Zone (SEZ) operations, and aligning customs procedures with the pace and complexity of modern export trade. The council also highlighted the impact of changing consumer demand and shifts in global supply chains.
Customs and compliance proposals
Among the suggestions were rationalising import duties on cut and polished diamonds and coloured gemstones, and amendments to the Customs Act, 1962 to modernise procedures for a fast-moving export sector. The agenda includes risk-based clearances, technology-led appraisals, and self-certification mechanisms for trusted exporters—steps aimed at improving turnaround time and transparency.
Separately, the All India Gem and Jewellery Domestic Council (GJC) advocated GST rationalisation for the domestic market. The council proposed reducing GST on gold and silver jewellery to 1.25% from 3%, arguing it would ease household financial stress, restore proportionality, and broaden the base of taxed transactions by reducing the incentive to remain outside formal channels.
Why Budget 2026-27 is key for the sector
The jewellery industry is highly sensitive to price and compliance friction, particularly because input costs, inventory cycles and export timelines can be affected by small changes in duties, refunds and documentation. Stakeholders say that a simplified tax structure and faster customs processes could help Indian exporters respond better to competition and demand volatility.
The next signal will be whether the Budget speech or subsequent notifications include tangible changes on GST slabs for jewellery, customs processes for gems, and export facilitation measures—especially for SEZ-linked operations and high-frequency shipments.