The gems and jewellery industry has welcomed the GST 2.0 reform saying it ushers in a new era of trust, transparency, and efficiency for the sector.
“GST 2.0 is a landmark reform that ushers in a new era of trust, transparency, and efficiency for the gems and jewellery sector. It reflects the government’s commitment to ease of doing business and provides jewellers with the confidence to focus on growth, innovation, and customer service,” All India Gem and Jewellery Domestic Council (GJC) Chairman Rajesh Rokde said in a statement.
“These steps will strengthen industry credibility, safeguard livelihoods, and contribute to sustainable development across the country,” Rokde said.
The GST Council on Thursday increased the threshold for arrest-related action from Rs 1 crore to Rs 5 crore and required approval from a higher authority before an arrest is made.
Rokde said it could provide relief to small and medium-sized traders and help reduce the fear of unnecessary harassment, while ensuring that genuine cases of tax evasion are dealt with appropriately and ensuring greater accountability, due process, and protection against arbitrary action against genuine businesses.
The Council also withdrew the Integrated GST (IGST) exemption benefit on gold, silver, and platinum imports by banks and nominated agencies, who will now attract 3 per cent IGST effective April 1, 2026.
Rokde said a predictable GST rate-change schedule, under which revised rates would generally take effect from April 1 rather than changing midway through the financial year, would help businesses plan their pricing, inventory, accounting, and compliance more efficiently.
The Council’s recommendations comprehensively address areas where jewellers have long sought reform — from smoother movement of goods in transit and faster automated refunds that improve cash flow, to fairer notices that reduce litigation and ensure natural justice, he said.
“The rationalisation of penalties, reduction of the general penalty cap, and recognition of employee insurance ITC reflect a balanced approach that values both compliance and care for our workforce. Most importantly, the withdrawal of arrest powers and the increase in prosecution thresholds will instill greater trust and confidence across the trade,” he added.
These measures will reduce disruption, improve working capital, safeguard livelihoods, and create a more supportive business environment, he added.
