The sector is reportedly a USD 41 billion export industry and it contributes 7 percent to the country's economic growth and 15 percent to exports.
The 3 percent Goods and Services Tax (GST) on exporters for procuring gold from nominated agencies is hampering jewellery exports from India, industry body GJEPC said on Tuesday.
Gem and Jewellery Export Promotion Council (GJEPC) Chairman Pramod Agrawal said the sector is a USD 41 billion export industry and it contributes 7 percent to the country's economic growth and 15 percent to exports.
"Government has given relief to nominated agencies for not paying IGST upfront on gold import on submission of bond. But there is still implication of 3 percent GST on the exporter for procuring gold from nominated agencies which from time to time the council has represented to government. This is hampering gold jewellery exports from India," he said in a statement.
He also urged the government to expedite the refund processes as the industry is facing an issue of non-realisation of GST paid.
"GST rates for gold jewellery remained at 3 percent and as a result, excluding the exports of SEZ which doesn't fall in the ambit of GST, the gold jewellery exports from domestic tariff area has seen a reduction," he added.