Relief for diamond merchants as online auction doesn’t fall under Equalisation Levy
- | Divita S Gupta
In light of the equalisation levy being implemented, the Gem and Jewelry Export Promotion Council had approached the Finance Ministry seeking clarity on whether the equalisation levy was applicable to purchases made through online diamond auctions. Indian diamond merchants had been excluded from such auctions as the companies selling these diamonds were not clear on the scope of the equalisation levy.
Sabyasachi Ray, Executive Director of the Gem and Jewelry Export Promotion Council stated, “Over 95% of diamonds imported in India are for manufacturing purposes and are later exported and sold in the international markets. The clarification on the levy will help the industry meet international demand for jewellery more efficiently during the upcoming Christmas and New Year Gifting season after the initial set back due to COVID-19 .”
In a meeting with the Gem and Jewelry Export Promotion Council, Union Corporate Affairs and Finance Minister, Nirmala Sitharaman assured the industry body that the equalisation levy was not applicable to the sale of rough diamonds sourced via online auctions.