Excise duty exemption limit for jewellers hiked to Rs 10 crore

[related-post]

Watch Video: What’s making news

The government has also decided to increase for jewellery manufacturers “the SSI (Small Scale Industry) eligibility limit from Rs 12 crore to Rs 15 crore and the SSI exemption limit from Rs 6 crore to Rs 10 crore in a fiscal and Rs 85 lakh for the month of March, 2016.” The government, in Budget 2016-17, had proposed 1 per cent excise duty on jewellery without input credit or 12.5 per cent with input tax credit on jewellery excluding silver other than those studded with diamonds and precious stones.

“Excise duty of 1 per cent without input and capital goods tax credit or 12.5 per cent with credit may apply to parts of articles of jewellery, made of platinum, gold and silver,” the government said while accepting the Ashok Lahiri-chaired sub-committee’s recommendations submitted to it on June 23.

Also, there will be no requirement to submit any ground plan of premises for taking excise registration and the excise duty on jewellery is payable at first sale invoice value. “No excise duty may be payable on the sale of traded goods; (also) records maintained for State VAT and other private records, showing details of inputs, stocks, manufactured goods, sold/exported goods, etc to be accepted for excise purposes. Stock details to be maintained on weight and caratage basis,” it said.

Movement of jewellery, which does not involve sale (for example, movement of jewellery, to be shown as samples, branch transfers not involving sale, for display in exhibition, for hallmarking, and for approval before sale) will not be liable to excise duty. No transit checks by excise officers.

“When a retail customer brings jewellery to a jeweller which is converted into new jewellery …, excise duty will be payable only on value addition, including cost of additional materials and labour charges charged, subject to the maintenance of certain records,” the government said.

Further, “an optional scheme may be prescribed” for jewellers who are not able to maintain separate physical stocks and/or records of manufactured and traded goods.

For availing the optional scheme, a principal manufacturer of jewellery should maintain separate stocks on weight and/or carat basis separately for — silver studded jewellery, gold or platinum jewellery studded with diamonds and other gold or platinum jewellery.