Diamond trading in India suspended on 17 June 2017 in opposition to a new GST on diamonds which will come into force from 1 July, said The Times of India.
The call for shutdown was initiated by a diamond GST sangarsh samiti which opposes to the Indian government’s decision to implement three percent GST on polished diamonds, 18 percent on diamond trading and 0.25 percent on rough diamonds.
The source said around 4,000 diamond brokers and 3,500 diamond merchants did not work, and 3,000 SMEs remained shut in the diamond hub of Varachha, Mahidharpura and Katargam in the city.
It is estimated that the shutdown would result in loss to the tune of over Rs700 crore to the trade.
The diamond GST sangarsh samiti leader Jeram Kalasia said, "All diamond brokers and merchants joined the bandh. The diamond trading was suspended on Saturday. All the small and medium diamond units were closed, while the big units functioned normally. We have asked GJEPC and Surat Diamond Association (SDA) to strongly represent for exemption of diamond industry from GST as it would otherwise make it difficult for small diamantaires."
Surat Diamond Association (SDA) president Dinesh Navadia said, "The SDA had supported the bandh call given by the sangharsh samiti. We will be representing the issue before the GST Council on June 18."
The Gems and Jewellery Export Promotion Council (GJEPC) asked the diamantaires in Surat, Navsari and other cutting centres in Saurashtra not to join the strike.
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