GOODS AND SERVICE TAX IMPLEMENTATION IN JEWELLERY SECTOR: A COMPARATIVE STUDY ON ORGANISED AND UNORGANISED TRADERS IN INDIA

GST implementation is expected to be positive for jewellery companies in the organized market. Analysts expect GST to improve higher tax compliance, which will result in a level-playing field for the organized market. This is a landmark for the jewellery sector as the government rightly kept the overall tax burden low in the industry at 3%, keeping in mind the unique characteristics of the gems and jewellery sector, the ‘kaarigars' and small jewellers. This is expected to reduce the price differential versus unorganized firms, which in turn is likely to result in market share gains for companies such as Titan and support their earnings growth. The impact on the unorganized sector will be one factor to watch for from a medium-term perspective. The current study is intended to provide a comparative analysis of the beneficiaries in the implemented GST rate between organized and unorganized traders. This paper also discusses the various factors that need to be taken into consideration by the jewellers and authorities to attract the benefits of implemented GST.