GJC Leaders Share Insights on GST 2.0 Reforms
The recently announced GST 2.0 reforms have sparked diverse reactions across the gems and jewellery industry. While the government’s decision to simplify tax slabs, reduce rates on essentials, and stimulate consumer demand is being hailed as a landmark step, industry leaders note both opportunities and challenges for the sector. The All India Gem and Jewellery Domestic Council (GJC) shared its perspective through key spokespersons:
Mr Rajesh Rokde, Chairman, All India Gem and Jewellery Domestic Council (GJC):
The current GST reforms (GST 2.0) offers no direct and immediate relief to gems and jewellery exporters. Importantly, the gems and jewellery sector was excluded from the latest reforms, which reduced the number of GST slabs from four to two (5% and 18%), eliminated the 12% and 28% brackets, and introduced a 40% rate for luxury goods. As a result, the reforms do not offset the adverse impact of U.S. tariffs, since input costs and compliance burdens remain unchanged. However, by focusing on stimulating consumption, the GST changes may support the gems and jewellery sector indirectly over the longer term. The new rates, effective from September 22, are expected to boost consumption, with the overall fiscal impact of the overhaul estimated at around Rs 50,000 crore.
Mr. Avinash Gupta, Vice Chairman, All India Gem and Jewellery Domestic Council (GJC):
“With the rollout of next-gen GST reforms, we believe consumers will experience a tangible increase in disposable income—thanks to the combined effect of income tax relief and reduced GST rates. This dual benefit puts more money directly into the hands of households, encouraging aspirational purchases and lifestyle upgrades. The simplified two-tier GST structure and lower tax rates on daily essentials are expected to boost consumer confidence and spending, especially during the festive season. For the gem and jewellery sector, this presents a significant opportunity, as more consumers are now empowered to invest in jewellery—not just as adornment, but as a symbol of prosperity and financial security.”
Mr. Saiyam Mehra – Director of Unique Chains and Jewels Limited and Past Chairman GJC
“The next-gen GST reforms mark a pivotal moment for India’s consumption-driven economy. By streamlining tax slabs and easing the burden on essential goods, the government has empowered consumers with greater purchasing power. For the gem and jewellery industry, this translates into renewed optimism—where jewellery is not just a luxury, but a preferred investment and cultural expression. We believe this reform will unlock fresh demand, especially from emerging markets and younger buyers seeking value and authenticity.”
