GST 2.0 to Boost Jewellers’ Trust, Cash Flow: GJC

MUMBAI: India’s gems and jewellery sector has welcomed GST 2.0, with industry leaders expecting the reforms to reduce compliance hurdles, improve cash flow and create a more business-friendly environment for jewellers across the country.

Rajesh Rokde, chairman of the All India Gem and Jewellery Domestic Council (GJC), described the reforms as a landmark step towards greater transparency, efficiency and trust in the industry.

“GST 2.0 is a landmark reform that ushers in a new era of trust, transparency, and efficiency for the gems and jewellery sector,” Rokde said.

He said the measures address long-standing industry concerns, including delays in refunds, difficulties in moving goods and prolonged tax disputes. Faster automated refunds, he added, would help businesses manage working capital more efficiently.

Rokde also welcomed provisions aimed at rationalising penalties, reducing the general penalty cap and recognising input tax credit (ITC) on employee insurance.

“These progressive steps will strengthen industry credibility, safeguard livelihoods, and contribute to sustainable development across India,” he said.

The GJC chairman said fairer notices and measures to reduce litigation would help ensure natural justice for businesses. He also highlighted the withdrawal of arrest powers and higher prosecution thresholds as important steps towards building confidence among jewellers.

According to Rokde, these changes could reduce business disruptions and allow industry players to focus more on growth, innovation and customer service.

“The Council’s recommendations comprehensively address areas that jewellers have long sought reform in,” he said.

Rokde said a predictable tax framework would benefit businesses while strengthening compliance and protecting employment across the sector.

The GJC said it wholeheartedly welcomed GST 2.0 as a forward-looking framework for one of India’s vital industries. The council expects the reforms to support sustainable growth, improve operational efficiency and enhance confidence among jewellers and their customers.

The actual impact will depend on implementation and how effectively the measures address day-to-day business challenges.