GJEPC hails tax exemptions on itesm taken for int'l promo

Government decision to exempt gems & jewellery taken for international exhibitions from integrated goods and services tax has given a big breather to the industry that has been roiled with a higher customs duty earlier this month and continuously falling demand. "We welcome this trade friendly step as it can help boost our promotional activities globally apart from providing a big respite to exporters," GJEPC chairman Pramod Kumar Agrawal said Wednesday.

Before this relaxation, gems & jewellery items taken out of the country for exhibitions or as consignments for promotional activities used to attract IGST. The finance ministry has clarified since activities do not constitute supply, do not fall within the scope of Section 7 of the CGST Act..