GJC urges Indian Finance Minister to consider its recommendations for Union Budget 2026-27

The All India Gem & Jewellery Domestic Council (GJC) has urged Finance Minister Nirmala Sitharaman to consider its suggestions for the 2026-27 Union Budget. The recommendations focus on tax and policy measures to alleviate cost pressures, enhance compliance, and support the small and medium-sized jewellers in India’s domestic market.

The GJC’s budget recommendations are centred around five broad areas, including GST rationalisation and direct tax relief linked to inventory valuation. A major demand is to cut the GST on gold and silver jewellery from the present 3% to either 1.25% or a uniform 1.5% across the sector. The council believes this would help mitigate the inflation-led pressures and revive demand in middle-income and rural markets.

The GJC has also requested a refund mechanism for accumulated input tax credit on services or a cut in GST on services like rent, security, and logistics. These currently attract an 18% levy, which the council says has created an inverted duty structure for many jewellers. Other proposals include a clarification on the 5% GST rate applicable to jewellery job-work services and deferral of income tax on unrealised inventory gains due to gold price appreciation in FY26.

The Council has called for a capital gains tax exemption when hallmarked jewelry is exchanged and reinvested. “A modest GST reduction, together with relief on notional inventory gains and job-work clarity, will bring millions of transactions back into the formal economy,” said GJC Chairman Rajesh Rokde.