The Gem and Jewellery Export Promotion Council (GJEPC) has welcomed the introduction of the Taxation and Other Laws (Amendment) Bill, 2026, tabled in the Lok Sabha on August 4.
The Bill inserts entry 13F in Schedule IV to the Income-tax Act 2025, providing a full income tax exemption on income from the sale of rough diamonds by eligible foreign companies trading through Special Notified Zones (SNZs). The exemption takes effect from October 1, 2026, and runs until March 31, 2041.
GJEPC Chairman Kirit Bhansali said, "This is a defining moment for India's diamond industry... A 15-year statutory exemption removes that doubt entirely." He added that the measure was a long-standing Council demand, intended to let small and medium diamond manufacturers source rough diamonds directly from global mining companies, auctioneers and traders.
The Council said the exemption covers foreign mining companies, sightholders, brokers, aggregators, and tender and auction entities participating in India's SNZs. It also noted that the definition of "rough diamond" under the Bill covers unworked, sawn, cleaved or bruted stones, including sorted and assorted parcels.
GJEPC has called on the Central Board of Direct Taxes (CBDT) to prescribe compliance procedures for eligible foreign companies ahead of the October 1 effective date. It also sought consequential amendments to Para 4.49 of the Foreign Trade Policy 2023, and to Customs Circulars 17/2015 and 36/2019 governing SNZs at the Bharat Diamond Bourse, Mumbai, and the Gem and Jewellery Hub, Surat.
The SNZs currently operate in Mumbai and Surat.
