Diamond Worth $100 Million Got Stuck Way Back To India.

The diamonds worth millions of dollars shipped by Indian Diamantaires which got displayed at the Hong Kong Jewellery & Gem Fair held on June 22-25 have not been able to secure their clearance from customs upon re-import.

According to Anoop Mehta, president of Bharat Diamond Bourse, the reason is some “software related issue.”

“The matter is of concern as 250 parcels are held up at customs due to a software issue,” he said. “We are hoping the issue will be solved with the visit to BDB of a key customs commissioner tomorrow (Thursday).”

“These goods were shipped out pre-GST,” he added. He confirmed that Commissioner of Customs (Airport Special Cargo) Vinay Brij Singh would visit the BDB (Bharat Diamond Bourse) on Thursday to resolve the issue. GST, unlike the earlier VAT regime, is on supply, whose scope extends to sale, barter, lease, exchange, etc. The jewellery fraternity is hoping that interstate movement of ornaments for exhibitions and not sale does not mandate those displaying jewellery to take temporary registration casual taxable person in the state where they aren’t registered under GST. There are several upcoming jewellery shows like IIJS-2017 and Jewel Trends in Mumbai.

MS Mani, partner indirect tax Deloitte Haskins & Sells LLP said, “The supply of goods by a casual taxable person as defined in Section 2(20) of the CGST Act for an exhibition cum sale in a state would require him to make an advance deposit of his potential tax liability as contemplated in Section 27(2) of the Act. The government may consider taking a bank guarantee or letter of undertaking in lieu of the advance tax deposit, especially in those cases where the event is merely an exhibition and no sales are envisaged, this will enable various bodies to display their goods in exhibitions without any cash flow issues,”

By: Tarun Rao

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