Jewellers Unhappy over mandatory PAN: GJF
A Discriminated Policy to deprive Millions of Non-Pan Holders from Buying Jewellery
GJF organizes its Preferred Manufacturer of India (PMI3) at Pune
Pune, January 5, 2016: The All India Gems and Jewellery Trade Federation (GJF), the national trade federation for the promotion and growth of trade in Gems and Jewellery (G&J) sector across India, has expressed dissatisfaction towards the Government over imposition of requirement of Pan Card on any transaction of Rs 2 lakhs and above. From January 1, 2016, PAN will be mandatory for all transactions above Rs 2 lakhs in cash or through card in entire Gems & Jewellery sector.
Speaking to journalist here during GJF’s PMI event, GJF Chairman Mr. G V Sreedhar said, “Such restriction of furnishing Pan Card for Rs 2 lakh and above purchase of jewellery will discriminate 70-80% of the rural buyers including farmers as they are not under tax net and do not have Pan Card. 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. We also emphasize the need to reduce import duties on Bullion, Gems, Jewellery and Jewellery Machineries. 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. Today, people buy jewellery items not only for their daily uses but also for essential purposes like festive and marriages”.
GJF Director Mr. Ashok Minawala said, “We will be facing problems of encouraging buyers to visit our showrooms since the new restriction of pan card compulsory for buying jewellery articles above Rs 2 lakh. It is a negative step for the industry as this would neutralize benefits arising out of monetization scheme, which is positive. As of 31st March, 2015, there are approx. 22.3 crore PAN cards issued in India. Will it be justifiable to ask for a pan card to approximately 89-90% of the population who do not possess one?”
Mr. Nitin Khandelwal, PMI Committee Convener, “A large number of Jewellery manufacturers and retailers have gathered in Pune for three days Preferred Manufacturers of India (PMI) program to meet and discuss various innovative means for business development of Jewellery sector in India and also impediments like Pan Card requirement on purchase of Rs. 2 lakhs and above.
Mr. Khandelwal further said, “The PMI programme offers an excellent marketing platform for Manufacturers & Retailers, providing 360 degree solutions to participants by fulfilling several business objectives, including enhancement of the brand’s image and expansion of market share by establishing and reinforcing business relationships with prominent retailers of India. The platform enables businesses to focus on increasing profitability by offering them a competitive advantage, save time as well as reduce marketing and promotional costs. The PMI participants comprise the country’s leading manufacturers of Gold, Diamond, and Studded Jewellery and are renowned for the quality and range of products as well as innovation and exclusive designs. As the Preferred Manufacturers of India, the manufacturers also offer retailers with immaculate service levels besides product distinction. The objective of the programme is to strengthen the jewellery supply chain model in the country, and also promote skill development program by improving the living standards of skills men / ‘karigars’.”
With the imposition of pan card requirement, the Gem & Jewellery industries fears to collapse and the Hon. Prime Minister Shri Narendra Modi’s initiate of Make in India and the Skill Development programs will fail. Millions of artisans will lose their jobs with no alternative livelihood.
Indian Gems and Jewellery industry is one of the largest in the world with a share of 29 per cent in global gold jewellery consumption. This sector’s market size is about 4 – 5 per cent of the country’s GDP, and it is the second highest contributor to the Indian commodity exports with a share of 13 per cent after petroleum products (20 per cent).
GJF urges the Government to make the country a global hub by creating many domestic jewellery manufacturing parks where shared infrastructure facilities can reduce overheads and reduce costs to final customers. If the gems & jewellery sector which contributes around 8-10% to the GDP and 13% of exports (and employs the 2nd largest number of people after the software industry) gets industry statues, then getting land for factory units in Government owned sites such as SEZs/ MIDC areas, etc. will become easier.
About GJF: GJF is a national trade federation established for the promotion and growth of gems and jewellery trade across India. It represents over 6,00,000 players comprising manufacturers, wholesalers, retailers, distributors, laboratories, gemologists, designers and allied services to the domestic Gems & Jewellery industry. The Gems & Jewellery industry is a hand crafted and labour intensive with over 1 crore strong labour force engaged in the manufacturing of jewellery industry in the domestic sector. The domestic industry is estimated to be in the region of Rs. 2.51 lakh crores today with the potential to grow to Rs. 5 lakh crore by 2018. The Federation’s mission is to support and promote the progress and prosperity of all members in the gems and jewellery industry across India. GJF serves as an interface between the Government and the industry, providing regular news updates on Government notifications, rules and regulations, conducting national level programs and launching initiatives for trade promotion and development, partnering with educational and research institutes for skill development and promotion of gem and jewellery education, undertaking CSR activities on behalf of the trade, besides numerous other functions.
