GJC Submits Comprehensive Pre-Budget Recommendations for Union Budget 2026–27

All India Gem & Jewellery Domestic Council (GJC), the apex body representing India’s domestic gems and jewellery trade, submitted its detailed pre-budget recommendations to the Hon’ble Finance Minister Smt. Nirmala Sitharaman for consideration in the Union Budget 2026–27.

The representation focuses on five core pillars:

1.      GST reforms to restore affordability and eliminate working capital blockage

2.      Direct tax relief on unrealised inventory appreciation due to gold price surge

3.      Strengthening formalisation and consumer protection through policy clarity

4.      Operationalisation of the long-pending Tourist GST Refund Scheme

5.      Sector-specific measures to mobilise idle gold, deepen digital payments, and support MSMEs

Key recommendations include:

Reduction of GST on gold & silver jewellery from 3% to 1.25% (or a uniform 1.5% across the sector) on revenue neutral / equivalence ratio to offset inflation-driven tax burden and revive middle-class and rural demand.

Refund of accumulated ITC on input services or reduction of GST on key input services (rent, security, logistics, etc.) from 18% to 5% to correct inverted duty structure.

Clear circular affirming 5% GST on jewellery job-work services to protect karigars and prevent field-level harassment.

One-year deferral of income tax on unrealised inventory appreciation caused by gold price rise in FY 2025–26, without interest.

Exemption from capital gains tax on exchange of hallmarked jewellery when proceeds are reinvested in new jewellery.

Immediate operationalisation of the Tourist GST Refund scheme at major airports to boost inbound tourism retail spending.

Simplified compliance for MSME jewellers, including higher turnover thresholds for returns and protection from duplicate notices post-audit.

Policy framework for digital gold, rationalised MDR on credit card transactions, and introduction of formal EMI for hallmarked 22-karat jewellery.

The submission emphasises to strengthen India’s position as a global jewellery hub while aligning with national goals of Atmanirbhar Bharat, Make in India, and Viksit Bharat @2047.

Rajesh Rokde, Chairman, All India Gem & Jewellery Domestic Council (GJC) said: “The sharp rise in gold prices has multiplied the absolute GST burden on consumers and created severe working capital stress for jewellers, even though no policy change has occurred. Our recommendations are not for concessions but for restoring proportionality, liquidity and fairness. A modest GST reduction, together with relief on notional inventory gains and job-work clarity, will bring millions of transactions back into the formal economy, protect karigar livelihoods, and make jewellery once again an accessible savings asset for Indian households. We are confident that the Hon’ble Finance Minister will consider these practical, calibrated reforms in the upcoming Budget.”

Avinash Gupta, Vice Chairman, GJC added: “Our sector is deeply committed to formalisation, transparency and digital transformation. By operationalising the Tourist GST Refund Scheme, enabling EMI for 22-karat jewellery, capping credit-card MDR, and regulating digital gold, we can significantly enhance traceability, boost tourism-linked exports, and bring younger consumers confidently into the organised market. These steps will also help reduce India’s reliance on imported bullion over time by mobilising domestic gold through transparent banking channels. We stand ready to partner with the Government to implement these changes smoothly and effectively.”

The council remains committed to partnering with the government to drive transparency, formalization, and consumer trust, ensuring the sector’s contribution to India’s economic and cultural legacy.