Budget 2026: Gems and jewellery sector seeks GST cuts, duty rationalisation, easier customs to boost exports

India’s gems and jewellery industry has urged the Union government to consider a package of tax and policy reforms in the upcoming Union Budget 2026–27, arguing that the sector faces new pressures from global trade headwinds and changing supply chains. The demands were outlined in industry representations highlighted in reports dated 25 January 2026.

The Gem and Jewellery Export Promotion Council (GJEPC), in its pre-Budget memorandum to the finance minister, pushed for measures aimed at improving export competitiveness and lowering operating frictions for exporters. The industry view is that cost efficiency and faster, more predictable compliance processes have become more critical as markets tighten and consumer demand shifts.

Key proposals include rationalising customs duties—especially on cut and polished diamonds and coloured gemstones—along with procedural reforms to modernise clearances. The recommendations also point to technology-led compliance ideas such as risk-based customs checks and digital appraisal systems, alongside stronger facilitation for trusted exporters.

Separately, the All India Gem and Jewellery Domestic Council (GJC) has called for GST rationalisation on gold and silver jewellery, stating that a lower rate could reduce stress on households and broaden tax-compliant transactions. Industry bodies have also highlighted the need to operationalise a Tourist GST Refund mechanism via pilots at major airports to improve India’s attractiveness as a retail jewellery destination for international visitors.

• Focus: Budget 2026–27 reforms for exports and domestic demand.
• Top asks: GST rationalisation, customs duty and Customs Act procedure updates.
• Operational suggestion: Tourist GST Refund pilots at major airports.