(IDEX Online) - The new Chairman of The Gem and Jewellery Export Promotion Council (GJEPC), Pramod Agarwal, has welcomed the decision by the India's Goods and Services Tax (GST) Council to slash the GST rate on cut and polished diamonds and precious stones to 0.25 percent from 3 percent, saying it will benefit small and medium-size firms and give a boost to the sector.
Agarwal pointed out that the bulk of the raw material used in the gemstones industry is imported and more than 90 percent of cut and polished diamonds are exported. He added that since manufacturing involved high value products, the lower rates will enable the industry to "function smoothly without blockage of working capital".
The changes will go a long way in helping the country achieve its aim of becoming the global leader of the gem and jewelry industry, he said in comments on the GJEPC website.