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Indian Tax Office Lightens Exporters’ Load
Jul 25, 2019 3:44 AM
By Rapaport News
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RAPAPORT... Diamond exporters will be allowed to ship goods out of India for trade shows
or consignment without paying goods and services (GST) tax, the government has announced.
The revision rules that these items don’t constitute “supply,” Indian authorities said last week following several meetings with the Gem and Jewellery Export Promotion Council (GJEPC). Therefore, members of the trade have a six-month period in which to
reimport the goods without incurring tax.
However, items fully or partially sold abroad during the
half-year window will constitute “supply” under the GST rules. The exporter will
then need to pay tax on the quantity of the shipment that has been sold.
Additionally, any goods not returned within the allotted time frame will be
charged after the sixth month, the government noted. The announcement did not deal with whether reimporters must pay customs duty.
The GST tax, which was established in July 2017, increased the rate for gold, diamonds and polished gemstones to 3%, and added a new tax of 0.25% for rough diamonds and other rough gemstones.
“This will further boost promotional activities globally,”
said GJEPC chairman Pramod Agrawal. “The move will definitely provide respite
to our member exporters.”
Image: Rough-diamond inspection. (Shutterstock)
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Tags:
CBIC, Central Board of Indirect Taxes and Customs, Gem and Jewellery Export Promotion Council, GJEPC, GST, Indian Tax Office, Ministry of Finance, Pramod Agrawal, Rapaport News
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