NE BUSINESS BUREAU
MUMBAI, MARCH 21
All India Gem & Jewellery Domestic Council (GJC), a national trade federation with representation of over 6 lakh jewellers from across India, has sought a slew of measures regarding advance tax payment, an extension of gold metal loan maturity and interest payment on the gold metal loan, as this being last month of the financial year from the Central government to restore its lost sheen.
Amidst the fear of the virus, the indigenous gem and jewellery sector in the country has come to a standstill with virtually no footfalls in jewellery stores. Many jewellers have to even shut down their shops located in malls and shopping complexes
Anantha Padmanaban, Chairman, GJC, said, “Pertaining the above issue, we have sent a recommendation to Hon’ble Prime Minister stating our concern and we have received a prompt and favourable response from the PMO. We are further pleased to hear about the formation of a task force under Hon’ble Finance Minister which was part of Prime Minister’s address to the Nation on March 19 2020. Considering the crisis, the domestic gem & jewellery sector seeks immediate relief measures to enable the trade to function smoothly. Prime Minister Narendra Modi ji had proposed setting up a COVID-19 emergency India Fund and RBI has taken measures to address liquidity issues – GJC urges Government officials and Banking sector officials to consider the issues faced by Gem & Jewellery sector, which is one of the top 3 job creators and employers in the country.”
GJC urged the Government to give a further extension of at least 180 days for repayment under the Gold Metal Loan (GML) scheme and interest thereon.
Most of the businesses avail CC / OD facilities for their working capital requirements. Keeping in mind the current market scenario, we have requested the government to grant us an extension in the payment of interest amount by at least 180 days and also reduce the rate of interest.
March 15 is the due date for payment of the fourth and last installment of advance tax for the year 2020-21. Considering, the slowdown in the business due to recession and the escalated outbreak of Corona Virus (COVID – 19), many businesses have failed to make an Advance tax payment. As a one-time relief, GJC urges the Government to extend the due date for the payment of Advance tax by at least 180 days.
GJC also urged the Government for deferring the GST Return and extending the time limit for filing GST return.
We have also sought to reduce the customs duty to 4%. If the rate of tax is not kept at this level, it shall encourage smuggling and encourage people to do unorganized business.
GJC feels that with the above support measures, the gems and jewellery sector could get motivated to overcome this sudden and huge crisis.
Anantha Padmanaban said, “GJC’s members across the country will extend all possible support and cooperation to the Government of India in the ongoing battle against COVID-19 pandemic. We are fortunate that our Central and State Governments are working 24 X 7 to make sure that we all remain safe. We welcome Honourable Prime Minister’s Janata Curfew on March 22 and we shall strive to make it a success. As a responsible body, we are issuing the advisory for the well-being of the entire jewellery fraternity across the country.”
