New Delhi: The gems and jewellery trade is fully prepared for the GST regime, to be implemented from July 1, industry body GJF said today and hoped that the Centre would levy only 1.25 per cent tax on the sector.
It attracts 2 per cent tax (one per cent each of excise and VAT) at present in most states except in Kerala. "We are fully prepared to implement the GST. Our jewellers are ready. We have developed a software to create awareness on the issue," All India Gems and Jewellery Trade Federation (GJF) chairman Nitin Khandelwal told reporters here.
The GST rate for the sector has not yet been finalised by the government. "We have demanded for 1.25 per cent GST rate. We hope the government accepts it. We are trying hard to convince them on this issue," he said.
GJF has met finance ministry officials as well as several state finance ministers on the issue and explain them the ground reality. Higher GST rate would affect organised players badly, GJF said, adding that the industry is pitching for lower tax to bring unorganised players on board so that their dealings are reported online with greater transparency.
Khandelwal and members of GJF were here to launch a 3-day event 'Preferred Manufacturer of India (PMI)', that will start in the national capital from tomorrow. The event aims to facilitate the country's top gems and jewellery makers and wholesales/retailers to network and place orders.
About 45 top manufacturers and 150-200 wholesalers and retailers are expected to participate in the event, which has been held for last six years.