Mumbai, Jun 29 (PTI) Apex industry body the Gem and Jewellery Export Promotion Council (GJEPC) on Wednesday welcomed the government's decision for rationalising the GST rates on cut and polished diamonds to 1.5 per cent saying it will help resolve the industry's issue on input tax credit (ITC).

“We are thankful to the finance minister for rationalising the GST rates on CPD from 0.25 per cent to 1.5 per cent and giving relief with regard to the issue of ITC accumulation for the diamond sector. It is estimated that over Rs 600 crores of ITC accumulation is there as on date with the diamond industry," GJEPC chairman Colin Shah said in a statement.

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He said that the increase in GST rate on CPD will not only stop further accumulation of ITC but release blocked working capital and stimulate industry growth.

"We would now urge the government to formalise a mechanism for the traders to receive the refund of the accumulated GST," Shah added.

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(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)