GJF urges Centre to withdraw PAN card application on sales of over Rs 1 lakh

The All India Gems and Jewellery Trade Federation (GJF), an apex body representing over 600,000 players in the gems and jewellery industry, today expressed its dissatisfaction over the central government's imposition of compulsory PAN (permanent account number) card application on any jewellery sales transaction of over Rs 1 lakh.

"Our business will come down by 50 per cent, if not more, due to this new proposal made in the Union Budget. We demand that the government withdraw this proposal before it goes into both the Houses," Mohanlal Jain, regional director of GJF, told mediapersons here on Monday.

According to Jain, more than 140 million PAN cards have so far been issued in the country, and approximately 89 per cent of the country's population do not possess one.

"We already have tax collection at source (TCS) applicable on sales of bullion on Rs 2 lakh and on Rs 5 lakh of jewellery. The new proposal of adding a further requirement of PAN card on sales of over Rs 1 lakh will be discriminating the 70 per cent of rural buyers as they are not under the tax net and do not have PAN cards," he said.

Welcoming several new initiatives by the central government in its Budget proposals, including gold monetisation scheme and also bringing the jewellery sector under the 'Make in India' programme, Jain said GJF expected the import duty reductions on gold soon as the current account deficit (CAD) / GDP ratio was estimated to reduce to 0.3 per cent in the next year, as against the present 0.9 per cent.