GJC urges Government to reduce GST on bullion and jewellery to 1.25%

The India Gem & Jewellery Domestic Council (GJC), the premier body for jewellers, has urged the government to rationalize the Goods and Services Tax (GST) on bullion and precious ornaments, reducing it to 1.25% from the current 3% to ease the burden on consumers and boost sales.

 As of February 6, 2025, the price of 24-carat gold stands at ₹86,510 per 10 grams, marking a 204% increase over the past 7.5 years. Despite this significant spike, the GST rate has remained static at 3%, effectively increasing the tax burden on both consumers and jewellers. Consequently, there is an urgent need to reduce the GST rate to 1.25%, aligning taxation with industry realities, encouraging compliance, and achieving revenue neutrality.

 India is a global leader in jewellery craftsmanship and manufacturing. To support the ‘Make in India’ initiative, it is essential to establish a competitive taxation framework that fosters local production rather than driving demand toward unofficial or imported channels. Lowering the GST to 1.25% would encourage domestic manufacturers, boost job creation, and position India as a global hub for jewellery making, aligning with the Honourable Prime Minister Narendra Modi’s vision of ‘Make in India’.