Budget 2026: Jewellery Industry Expects Tax Relief and Reforms:

Budget 2026: Jewellery Industry Expects Tax Relief and Reforms With the Union Budget 2026 set to be presented on February 1, 2026, i.e., tomorrow, the jewellery industry is closely monitoring the prices of gold and silver. This year's budget is important for the industry, as the gold and silver prices are continuously rising due to global tensions. The industry is waiting for the announcements expected from the Finance Minister Nirmala Sitharaman.

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The jewellery industry is concerned about the current Goods and Services Tax (GST) rate on jewellery. They are demanding that the current GST rates on jewellery be reduced from 3% to around 1-1.25%. As per the industry, due to the high prices of gold and silver and the current GST rates, customers have delayed their spending, reducing the demand. Lowering the GST rate would help promote more purchases. The jewellers are also demanding that the government cut the import duties on gold and silver. This reduction plays an important role as India heavily imports its raw material, and higher duties increase the manufacturing costs. Industry experts believe that lower duties can reduce costs and make the jewellery more affordable for Indian buyers. The industry is also demanding that the government focus on mobilising household gold reserves, which are estimated to be at around 24,000 tonnes. Introducing policies that will encourage people to recycle or exchange old jewellery could reduce the need for imports, support sustainable practices, and bring unused gold into the economy. Exporters are also looking for easier customs processes. Under the current customs processes, the slow clearance procedures and lengthy paperwork slow down the shipments and increase costs. The faster approvals, digital documentation, and risk-based inspections can help the Indian jewellers meet the strict delivery deadlines and compete better on a global level.

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Apart from tax-related expectations, jewellers are looking for support in skill development, technology adoption, and export infrastructure. Additionally, the industry bodies want the government to introduce the Tourist GST Refund Scheme at major airports. Allowing foreign tourists to claim GST refunds on jewellery purchases can help increase sales and make India a more attractive place for shopping for jewellery.