GST rate cut in diamond job work to free up Rs 1,500 cr working capital

Move is likely to encourage polishing units to upscale manufacturing

The Goods and Services Tax (GST) rate cut from five per cent to 1.5 per cent in job work for diamonds is expected to provide much-needed impetus to the industry. Blocked working capital worth Rs 1,500 crore in almost defunct job-work diamond polishing units is expected to be released even as diamantaires are likely to issue fresh orders to these units, following GST relief.

A similar benefit is set to accrue in case of cut and polished semi-precious stones where the GST rate has been pared to 0.25 per cent from three per cent.

In the diamond industry, imported or