Jewellers want small- and medium-size diamond processors exempted under GST

Industry says demand has been made to avoid cascading taxation, maintain competitiveness

To avoid multiple taxation under the coming goods and services tax (GST), diamond jewellers have urged they be exempted from levies on the processing of diamonds.

“Thousands of small and medium size units, with an estimated 100,000 work force, primarily in Gujarat, currently purchase (rough) diamonds from sightholders (authorised agents) of large global miners like De Beers, Rio Tinto and Alrosa, to process these. After processing, they sell these to large processors. Thousands of collection centres, therefore, are involved in the diamond business — after accumulating processed diamonds from small processors, they supply directly to exporters or large jewellery manufacturers. Largely