Sector Context
Surat cuts and polishes a large majority of the world's diamonds, and the wider trade — manufacturing units running the cutting and polishing process, jewellery manufacturers, and the traders and exporters moving finished stones and jewellery through a fast-turning, high-value market — carries compliance obligations most sectors don't. Manufacturers manage GST on job-work and a working-capital cycle tied to rough-diamond procurement; traders and exporters live and die by timely GST refunds, duty drawback, and FEMA-compliant export realisation. Since a 2020 notification under the Prevention of Money Laundering Act, dealers in precious metals and precious stones are designated reporting entities, with cash transactions of ₹10 lakh or more requiring formal AML reporting — which makes AML compliance a genuine, non-optional part of running this business, not a theoretical risk.