Advanced Search

India Tax Changes: One Win, One Defeat for Jewelers

May 25, 2016 6:50 AM   By Rapaport News
Email Email Print Print Facebook Facebook Twitter Twitter Share Share
RAPAPORT... The Indian government reversed a decision to broaden the application of a jewelry tax but is standing by a new stringency requiring more customers to present identity cards in shops.

Tax collected at source, a 1-percent levy paid by customers, will only apply to jewelry purchases of $7,422 (INR 500,000) or more, according to a source at the All India Gems & Jewellery Trade Federation (GJF). This represents a victory for the GJF, which had campaigned against a move to impose the duty on all jewelry sales of $2,969 (INR 200,000) or more.

However, new laws requiring customers to present their permanent account number (PAN) card when making a jewelry purchase of $2,969 or more will remain in place, the source said. The government had lowered the threshold last year from $7,422, prompting protests from the GJF which claimed it would discriminate against a majority of rural consumers who don’t have a PAN card. The changes were designed to curb the black market and increase the government’s tax receipts.

The latest decisions follow a jewelers’ strike in India for about six weeks in a bid to force the government to abolish the 1-percent excise duty. The walkout ended last month with the levy still in place.
Tags: All India Gems & Jewellery Trade Federation, GJF, India, Rapaport News, Strike, tax, tax collected at source, TCS
Similar Articles