Jewellers Propose GST Cut, MSME Support for Union Budget 2026

• The All India Gem & Jewellery Domestic Council (GJC) submitted pre-Budget recommendations to Finance Minister Nirmala Sitharaman for Union Budget 2026-27.
• Key proposals include rationalising GST, providing direct tax relief for inventory valuation, strengthening formalisation, and faster implementation of existing schemes.
• GJC recommends reducing GST on gold and silver jewellery from 3% to 1.25% or 1.5% to counter inflation and boost demand in middle-income and rural markets.
• Other demands include a refund mechanism for accumulated input tax credit on services, clarification on 5% GST for job-work, and deferral of income tax on unrealised inventory gains.
• The council also suggested rolling out a Tourist GST Refund Scheme, simplifying compliance for MSME jewellers, regulating digital gold, and enabling EMI options for hallmarked jewellery.

Why It Matters: Jewellers seek GST reduction, tax relief, and MSME support to formalise the sector and boost demand.