Government relaxes rules for jewellers

The government has relaxed the rules for tax on gold jewellery sales. As per the new rules, jewellers with turnover up to Rs 15 crore per year will be exempt from excise duty. Meanwhile, jewellers had gone on a strike for six weeks after the government imposed 1 per cent excise duty on gold jewellery during union budget for 2016-17.

On July 13, the government announced significant relief to jewellers by increasing excise duty exemption limit to Rs 10 crore from Rs 6 crore, and relaxed procedures. The centre has also decided to increase jewellery manufacturers’ Small Scale Industry eligibility limit from Rs 12 crore to Rs 15 crore. It also eased SSI exemption limit from Rs 6 crore to Rs 10 crore in a fiscal year and Rs 85 lakh for the month of March, 2016. According to the government, in the first two years, government agencies will not audit jewellers that have turnover of less than Rs 100 crore.

On an intraday basis, the share price of PC Jeweller has increased by 2.56 per cent, Titan rose by 1.6 per cent, Rajesh Exports too increased by 1.95 per cent on bourses. Meanwhile, Tribhovandas Bhimji Zaveri and Tara Jewels have increased by 2.47 per cent and 7.39 per cent, respectively on an intraday basis.