By: Vaibhav Tyagi, Founder ShipJewel.com
In the beginning, GST was viewed with a bit of skepticism in the Jewelry industry, but as the time went by, it has started showing positive impact for the organized Jewelry sector, especially for e-commerce.
One of the biggest benefits of it is the expansion of tax compliance across the sector, as a result of which everyone is at a level playing field. GST has mandated proper invoicing of the goods; thereby it has significantly reduced unnatural pricing in the unorganized sector.
Coming from a Jewelry e-com, GST has made selling items pan India a lot easier and transparent than it was earlier. In the past, selling in different states meant maintaining different compliance and rates for each one of them.
Talking about the Jewelry craftsmen, a unified GST has really simplified the process of sourcing and procuring the different raw materials, while remaining compliant with taxes.
As an indirect implication of GST, the industry is now getting more retail customers that look towards jewelry for style and luxury, and not necessarily as a tool for savings or park their surplus assets. There is a significant increase in customers that are opting for unique jewelry designs in a slightly lower price range than a heavy gold loaded jewelry. So, we are observing a shift in the nature of the jewelry business from High Average Order Value (AOV) to a slightly lower AOV, but with the increase in affordability and thus the sales volume in organized Jewelry businesses.
In general, GST has paved the way for a much more organized jewelry industry with a rise of e-commerce targeted towards customers that value Jewelry for style and luxury.