Gujarat’s Finance Minister, Kanu Desai assured to resolve ITC accumulation and 2% equalization levy issues for the gems and jewellery industry: GJEPC.

Surat: State Finance Minister, Kanu Desai has assured the government’s support to resolve the issues faced by the diamond industry in Surat in particular and Gujarat in general on Monday.

A delegation led by the regional chairman of Gems and Jewellery Export Promotion Council (GJEPC), Dinesh Navadia met Gujarat’s Finance Minister, Kanu Desai at Gandhinagar to represent the issues faced by Gujarat’s diamond industry.

Navadia, who was accompanied by Vinod Moradiya, Minister of Urban Development and BJP MLA from Surat (East), Arvind Rana, stated that the gems and jewellery sector is facing huge blockage of capital due to the  Input Tax Credit (ITC) accumulation under the Goods and Service Tax (GST). ITC worth crores of rupees belonging to the diamantaires and jewellery manufacturer are yet to be released by the government.

On the other hand, the diamantaires are facing the issue of a 2% equalization levy on the purchase of rough diamonds.

Navadia said, “The rough diamond prices have skyrocketed post coronavirus pandemic. Diamond mining companies in the world, which had reduced the mining of diamonds during the coronavirus pandemic last year, have increased the prices of rough diamonds. Compared to other centers in the world, rough diamonds are costly in India due to the 2% equalization level on the purchase of rough diamonds”

Navadia added, “I have represented the Finance Minister of Gujarat, Kanu Desai to remove the 2% equalization levy on the purchase of rough diamonds. He has assured to discuss the issues with the GST officers on top priority and come up with some positive measures”