e All India Gems and Jewellery Trade Federation (GJF), the national trade federation for the promotion and growth of trade in gems and jewellery sector across India expressed dissatisfaction over imposition of requirement of PAN Card on any transaction of Rs 2 lakh and above.
GJF Chairman, Sreedhar GV said, “This is not practical and will discriminate 70% of the rural buyers including farmers as they are not under tax net and do not have PAN cards. We urge the government to remove pan card requirement in jewellery sector and maintain status-quo on application of TCS on sales of bullion on Rs 2 lakh and on Rs 5 lakh of jewellery.” He also emphasized the need to reduce import duties on bullion, gems, jewellery and jewellery machineries.
The association stressed that the gems and jewellery sector is not a source to attract black money since there is a value addition of 15-20% in developing the products while bullion is a preferred segment for investment by black money holders. It said that the decision of imposing pan card restriction is unjustifiable and will tantamount to discriminate against a large number of populations who don’t have pan card number.
Reports suggest that in India, barely 8 to 10 percent of population has pan card. “Hence, a large number of rural buyers of jewellery will be deprived of buying jewellery items for marriages of their family members. Government needs to come up with more trade and industry friendly policies where industries can develop and grow to build the economy”, said GJF.
GJF represents over 6,00,000 players comprising manufacturers, wholesalers, retailers, distributors, laboratories, gemologists, designers and allied services to the domestic gems and jewellery industry.