Business

Gems and jewellery sector stares at ₹75,000 cr. loss

The All India Gem & Jewellery Domestic Council (GJC) said that the industry’s loss on account of COVID-19 could rise to ₹75,000 crore.

Anantha Padmanaban, Chairman, GJC, said, “GJC’s members across the country will extend all possible support and cooperation with the Government of India in the ongoing battle against COVID-19 pandemic.”

“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,”’he said.

“However, this being last month of the financial year, there are lot of due dates like advance tax payment, maturity date of gold metal loan, interest payment on gold metal loan,” Mr Padmanaban added.

Considering the crisis situation, the domestic gem and jewellery sector has sought immediate relief measures to enable the trade to function smoothly.

“The Prime Minister 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 the gems and jewellery sector, which is one of the top three job creators and employers in the country,” he said.

GJC has urged the government to give 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,” Mr. Padmanabhan said.

“March 15 was the due date for payment of the fourth and last instalment of advance tax for the year 2020-21. Considering, the slowdown in the business due to recession and the escalated outbreak of COVID-19, many businesses have failed to make advance tax payment,” he said.

As a one-time relief, GJC has urged the government to extend the due date for the payment of advance tax by at least 180 days.

GJC has also urged the government for deferring the GST return and extending the time limit for filing GST return. It has also sought to reduce the customs duty to 4%.

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Printable version | May 25, 2020 5:52:51 PM | https://www.thehindu.com/business/gems-and-jewellery-sector-stares-at-75000-cr-loss/article31145238.ece

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