CHENNAI: The gems and jewellery industry heaved a sigh of relief after the Ministry of Finance announced no IGST will be levied on gem and jewellery carried outside the country for exhibition purpose.
Earlier, gem and jewellery which was being carried outside of the country even for exhibition or consignment purpose was attracting IGST at reimport.
This comes into effect after several representations made by the trade and industry to the Ministry of Finance for exemption of IGST for the gems and jewellery carried for exhibition purpose.
The statement from the Government of India clarified that that the activity of sending or taking the goods out of India for exhibition or on consignment basis for export promotion do not constitute as supply as the said activity does not fall within the scope of section 7 of the CGST Act as there is no consideration at that point in time.
Since such activity is not a supply, the same cannot be considered as "Zero Rated Supply‟ as per the provisions contained in section 16 of the IGST Act.
Pramod Kumar Agrawal, Chairman, The Gem and Jewellery Export Promotion Council (GJEPC) said, “The entire gem & jewellery industry is thankful to the Govt. for coming up with this trade friendly step as this will further boost the promotional activities globally. As the apex body of the industry, while making representations we have not left any stone unturned in our genuine effort towards resolving this issue. The move will definitely provide respite to our member exporters.”