Pay 1% excise duty on gold jewellery: Finance Ministry

A big relief of exemption from registration under central excise authorities has given by government to small artisans and goldsmiths, only jewellary manufacture firms.

Earlier in Finance Bill, 1% alteration of excise duty on gold jewellery to include both branded and unbranded jewellery has been set by the Finance Minister. It will be difficult for small jewellary industrialists to establish their business because of Industry ease.

Recent government confirmed that excise duties charges on the principal manufacturer, not for those manufacture who on work for other.

As per assumption, if small manufactures produce branded jewellery, then they should also deny from excise for clearances up to 18.5 kg of gold, more less than 49 kg of jewellery in the previous year on an average price of Rs 27,000 per 10 grams.

In addition if any small manufacture having annual growth of Rs 1.5 crore in the current year, then govt. would fully exempt from duty. It is only charged on a tariff value equal to 30% instead of full value of the “transaction”, leaving where the retail customer provides the gold or old ornaments for remaking.

“As part of this proposal, with effect from 1st March, 2011, government levied an excise duty of 1% on precious metal jewellery – but only on goods manufactured or sold under a brand name,” the Finance Minister clarified.

As a result, small artisans and goldsmiths would be exempted and manufactures of Silver jewellery either branded or unbranded are fully exempt from registration in centre excise authorities.