Budget 2026: Gems and jewellery industry seeks GST cut, duty tweaks and faster customs processes

Key demands before the Budget

India’s gems and jewellery sector has laid out a detailed wishlist for the Union Budget 2026–27, urging the government to reduce tax and compliance burdens and improve export competitiveness. The proposals include GST cuts, rationalisation of customs duties, and policy measures to respond to global trade disruptions and changing supply chains.

The report said the Gem and Jewellery Export Promotion Council (GJEPC) submitted a pre-Budget memorandum to Finance Minister Nirmala Sitharaman, focusing on lowering costs for exporters and strengthening India’s place in global diamond trade and price discovery.

What the industry wants changed

Among the notable asks: reform of customs procedures through risk-based clearance, faster digital appraisal mechanisms and self-certification for trusted exporters. The GJEPC also flagged concerns about the existing Safe Harbour tax threshold and called it discouraging for international trade.

Separately, the All India Gem and Jewellery Domestic Council (GJC) argued for GST rationalisation on precious metal jewellery, along with changes linked to hallmarking, direct taxes and consumer-facing reforms. A tourist GST refund scheme was also flagged as an opportunity, with a push to operationalise it through rules and digital verification at major gateways.

Why this is economically significant

Gems and jewellery is a large export-linked sector with deep employment in cutting, polishing and retail. Any tweaks to GST and import duties can shift working-capital needs, influence formalisation, and alter India’s competitiveness against hubs such as Dubai, Antwerp and emerging processing centres. The sector’s demands reflect a push for both cost relief and process-speed—two factors that matter when global buyers are increasingly sensitive to price, turnaround time and traceability.