Rajasthan Budget 2015-2016: Increase in composition amount for Sarafa dealers/gemstones and Jewellery to affect trade

CM Vasundhara Raje-led Bharatiya Janata Party (BJP) government in Rajasthan presented the Budget for 2015-2016.

The state government in its budget has increased composition amount for Sarafa dealers (jewellers) from 0.25 per cent to 0.75 per cent while VAT on goods mentioned in schedule-V of RVAT has been increased from 14 per cent to 14.5 per cent.

The gem and jewellery traders’ community has been very upset with this announcement. The increase in the composition amount will make gold and silver costlier, said many traders. Henceforth, customers would have to pay additional Rs. 130 on 10gm gold and Rs. 180 on 1Kg silver. Jaipur Chamber of Commerce and Industry honorary secretary Ajay Kala said, “Neighbouring Gujarat has composition amount of 0.15 per cent while in Rajasthan it has been increased to 0.75 per cent, which would affect the gem and jewellery trade.”