Insights on GST 2.0 – Jewellery Industry Perspective.

Mr. Jignesh Mehta – Founder & Managing Director, Divine Solitaires

It’s a very welcome move by the government of India to reduce the GST and bring a lot of revolutionary measures in the indirect taxations I think the Gems & Jewellery sector is very very fortunate that there is no upward change, if at all, in the GST I’m sure the government would like to bring everything consolidated, there was a fear that it could trigger maybe an increase in GST from maybe 3% to maybe 5% or something, but this did not happen and that was a very very fortunate and a very appreciated thing for the industry.

We must appreciate that to the government. Overall, in totality, I think the industry will benefit because that’s a lot of savings and the consumers are you know going to get the advantage of better cash flow situation and usually the savings of Indian consumers usually tend to go towards jewellery in a big way, so we are very hopeful that this will lead to more consumerism into jewellery purchases.

As far as our pricing system is concerned, we are, because there is no change in the in the GST rates, our pricing system is very stable and we continue the same pricing system, so everything remains the same and that stability gives a lot of confidence to the customers. So, all in all put together. It’s a very positive situation and we have in fact Improved our targets and our projections for this year overall because overall the Jewellery industry, the Indian consumers buying jewellery is in a better situation and I think the consumption in India is growing quite significantly for jewellery. At least we are finding that in a very exciting way.

Divine Solitaires has been as you know growing and this year, we have got some significant more than 30% growth till now. So, we are hoping this growth continues and in fact it will become even better. Thank you.