Jewellery sector in Pink City adopts wait and watch policy over GST

Jaipur boasts of one the biggest markets for finished gems and jewellery in the country which employs more than 3 lakh people. However, traders, jewellers and customers in this sector will take time in fully coming to terms with the new tax regime in the country — the Goods and Services Tax (GST).

“See, whenever a new tax comes, we will have to, for once, wait and watch. We were always considered as unorganized sector. But, now that there will be 3 per cent GST, every person will be linked, purchaser, seller, buyer, everyone. So, we consider we will get a good opportunity to work, will get clean environment and we will take 3 per cent from customer and give to the government. So, there will be no big impact on trade. Sale might be down for sometime, but will recover,” mentioned Rajesh Dhamani, Hony. Secretary, Jewellers Association Jaipur, to India Today.

In Rajasthan, traders in various sectors are still getting used to the new tax structure. There have been several protests as well, primarily from the traders in the cloth sector against the implementation of GST. Jaipur has one of the biggest markets for finished gems and jewellery. But, at least in this sector, unlike the cloth sector, traders are not panicking as of now.

“It’s not that there is shortage in demand because this is artisan’s work. This work happens very slowly, does not happen very fast, is not mechanised. There is more dependency on hand work in jewellery, but it can happen that people who used to purchase for fashion or there might be little less sale,” Dhamani stated.

In the gems and jewellery sector, GST on raw material has been fixed at 0.25 per cent and on ready material at 3 per cent. Traders’ association feels that if the sector gets the right kind of impetus from the government and becomes organized, it can witness a boom in the days to come.
“Right now, there is a lot of scope in this industry top increase trade. Lots of people are migrating from China, so we think it’s the right time for Jaipur, for India that it’s taken towards boom. Will have to charge 3 per cent GST to our buyer and will have to submit with the government, but if this process is made slightly simplified, then, there will be a process in this sector which has so far been considered unorganized and we will be able to do our work systematically,” Dhamani said.

Courtesy: India Today