GJEPC and BMC in principle agree to abolish octroi

The inter-state movement of diamonds in India, which is high between Surat (Gujarat) – the diamond manufacturing hub and Mumbai (Maharashtra) the trading hub in India, can now get a breather. The Gem & Jewellery Export Promotion Council (GJEPC) said that has arrived at an in principle agreement with the Brihanmumbai Municipal Corporation (BMC), according to which the Council members can now export and import diamonds free of octroi duty, reports say. Indian retailers and manufacturers have long been facing the hurdle of high octroi duty – a tax which is levied by the Indian government and payable to the municipal councils.

Elucidating the agreement, rough or polished diamonds can enter and leave the city without attaching an octroi, also sale of diamonds by Council members to traders with valid documents - sales tax registration and company PAN cards can avail the advantage. If the Council members sell diamonds to consumers, the octroi of 2 percent will be charged.

This agreement although advantageous, leaves out non-council members in India.