25-7-2019
India’s Ministry of Finance announces integrated goods and services tax (IGST) will not be levied for exporting jewellery for exhibition or consignment out of the country following meetings with the Gem and Jewellery Export Promotion Council (GJEPC).
The statement from the Government of India explained that jewellery for exhibition and consignment purpose does not constitute “supply” as the activity does not fall within the scope of its Central Goods and Services Tax Act. The exported goods have to be either sold or brought back to India within six months. However, those which were already shipped abroad even for exhibitions will be excluded from the tax exemption.
The increase of IGST became effective in July of 2017. Prior to the revision, the rate for gold, diamonds and polished gemstones up 3 percent and a tax of 0.25 percent for rough diamonds and other gemstones introduced.
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