The jewelry industry is witnessing a “recession period” and skilled artisans are staring at prospect of job loss. lower customs duty on the imported gold and GST on jewelry. In the Union Budget for the year 2019-20, customs duty on the imported gold was raised from 10 % to 12.5 %, while GST on jewelry fixed at 3% as compared to 1% in the erstwhile VAT regime.
“The jewelry industry is passing through a recession due to the low demand. Thousands of skilled artisans are staring at prospects of losing jobs,”.
He said the hike in customs duty and present GST rate is affecting customer sentiment, as prices of jewelry have increased. High customs duty is also leading to the smuggling of gold.