Budget 2026: Gems and jewellery industry seeks GST cuts, customs changes and export-friendly reforms
Ahead of the Union Budget 2026–27, the gems and jewellery industry has asked for GST rationalisation, duty changes and smoother customs procedures to stay competitive amid global trade shifts. Industry bodies flagged costs, compliance frictions and the need for faster clearances, while also pitching measures like a Tourist GST Refund pilot at major airports to boost retail demand.
With the Union Budget 2026–27 approaching, India’s gems and jewellery sector has urged the government to deliver a package of tax and policy reforms aimed at strengthening exports and improving ease of doing business. The demands include GST rationalisation, customs duty adjustments and changes to procedures that the industry says currently add cost and delay across supply chains.
According to industry representations cited in reports, the Gem and Jewellery Export Promotion Council (GJEPC) submitted a pre-Budget memorandum to finance minister Nirmala Sitharaman, stressing that global trade in the segment is undergoing rapid change. The council argued that India must adapt to shifting supply chains, tariff pressures in key markets and evolving consumer preferences to protect its competitive edge.
Among the specific issues raised was the “Safe Harbour” tax rate, which exporters said remains too high and discourages international trade flows. The industry also sought rationalisation of import duties for cut and polished diamonds and coloured gemstones, with the goal of lowering input costs and keeping India attractive for processing and value-added activities.
On the customs front, the proposals pushed for risk-based clearances, technology-backed appraisals and self-certification for trusted exporters to reduce turnaround time. Such measures, the industry argues, are increasingly standard in export-led sectors that compete on speed, compliance certainty and transaction efficiency.
Separately, the All India Gem and Jewellery Domestic Council (GJC) is reported to have sought a reduction in GST on gold and silver jewellery, arguing that lower rates could widen the taxed base by reducing the incentive to transact outside the formal system. It also flagged reforms around hallmarking and direct tax issues as part of a broader modernisation push.
One operational demand that could affect retail inflows is the push to implement a Tourist GST Refund scheme, with the industry suggesting a phased pilot at airports such as Delhi, Mumbai and Bengaluru. The argument is that tax-inclusive pricing can make Indian jewellery less competitive for foreign tourists compared with destinations that offer seamless airport refunds.
The government’s response in the Budget will be closely watched because the sector sits at the intersection of exports, employment, MSME networks and global compliance expectations. If reforms reduce friction without weakening safeguards, the industry believes it can sustain growth even amid uncertain global demand.