The Union Finance Minister, Arun Jaitley straightaway stood firm on 1 % Excise duty proposed on non silver jewellery in Budget 2016-17.
While replying in the debate discussions held in the Lok Sabha on 14 March, 2016, he said that the duty is not applicable to small traders and it is a preparatory step towards GST. Since all goods will come under GST, why should gold be left? The aim is at linking gold with the Goods and Services Tax.
Budget 2016-17 has proposed to impose an excise duty of ‘1% without input tax credit or 12.5% with input tax credit’ on articles of jewellery [ excluding silver jewellery, other than studded with diamonds and some other precious stones].
The levy would be imposed on jewellers with Rs. 12 crores turnover in the previous year and in the coming years whose turnover would be Rs. 6 crores or more. It will be applicable only on principal traders and not to the manufacturers.
He said the tax officials will not harass the jewellers. Instructions are very clear that no inspector will enter the premises of jewellery makers due to the provision of self certification.
Let’s see how the jewellers will co-operate ! No concern was paid to the opposition by the jewellers across the country where the shutters were down for several days demanding excise rollback. The move will certainly make your Gold expensive.