Tax Exemptions Boost Diamond Trade

The Diamond Imprest Authorisation (DIA) scheme, introduced by the government in January, allows the duty-free import of cut and polished diamonds to promote exports and value addition. Imports under this scheme are now exempt from integrated tax and compensation cess, as per a recent DGFT notification.

The government announced on Tuesday that imports under the Diamond Imprest Authorisation (DIA) scheme are exempt from integrated tax and compensation cess, further easing the diamond trade.

The DIA scheme was launched in January to facilitate duty-free import of cut and polished diamonds within a specified limit, aiming to boost export and enhance value addition in the industry.

The Directorate General of Foreign Trade (DGFT) stated in a notification that these imports will continue to receive tax exemptions, promoting the diamond sector's export potential.