Ahead of Budget 2026, jewellery industry seeks GST cut and customs duty rationalisation
As the Union Budget 2026–27 approaches, India’s gems and jewellery sector has urged the government to consider reforms including lower GST and rationalised customs duties. Industry stakeholders argue the changes are needed to boost competitiveness, support exports and reduce compliance friction amid global trade uncertainty.
- Reporting desk
- Health India Network News Desk
- First published
What the industry is asking for
India’s gems and jewellery sector has renewed its pre-Budget pitch for policy changes, seeking a reduction in GST and rationalisation of customs duties. The demands are being positioned as a competitiveness push—aimed at improving margins, easing compliance, and helping exporters respond faster to shifting global demand.
Stakeholders have argued that the sector—one of India’s major export earners—faces cost pressures from duties on inputs and operational friction across the supply chain. The industry wants a tax structure that it says aligns better with international trade realities and encourages formalisation.
Why the timing matters
The call comes days ahead of the Budget Session of Parliament, which begins on 28 January 2026 and runs in phases until 2 April 2026. With the Union Budget 2026–27 expected on 1 February 2026 (a Sunday), sectors have accelerated lobbying to ensure their priorities are reflected in the final proposals.
For the jewellery trade, the Budget is closely watched for any tweaks to import duties on gold and other inputs, as well as GST rules that affect working capital cycles and retail pricing. Any change can influence consumer demand and export order books.
What to watch in Budget 2026–27
- Any GST rate revision or compliance simplification for gems and jewellery
- Customs duty changes on precious metals and stones
- Export incentive or credit measures for labour-intensive sectors
If the government responds with targeted tax and duty tweaks, the sector expects improved price competitiveness in overseas markets and reduced friction for domestic manufacturers and retailers.