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PANAJI
State's Commissioner of Customs, Central Excise and Service Tax K Anpazhakan, said the Central government has maintained the 1% excise duty levied on jewellers but has introduced exemptions, which will really help the smaller jewellers.
Anpazhakan at a press conference said, “The jewellers aren’t supposed to pay any excise duty if their annual turnover is less than Rs 6 crore, which is much higher than Rs 1.5 crore annual turnover limit on other small scale industries.”
Anpazhakan continued, “Besides, if a jeweller’s previous year’s turnover was less than Rs 12 crore, then he isn’t supposed to pay any excise duty upto Rs 6 crore turnover this year. On the other hand, if the annual turnover was more than Rs 12 crore previous year, then he is supposed to pay excise duty regardless of his turnover this year.”
It is reported that the government’s aim behind this move is to encourage smaller jewellers by giving them tax exemptions so that they can scale up. The commissioner also clarified that any artisan or a goldsmith who only manufactures jewellery on job-work basis isn’t required to pay any excise duty.
Further, the obligation to pay excise duty will be on principal manufacturers of jewellery as per rule 12 AA of the central excise rules, 2002.
Local jewellers said it is not yet clear as to who these principal manufacturers are. The rule 12 AA says that anyone who gets jewellery made on his behalf should pay excise duty. Most jewellers, big and small, get their jewellery made from artisans and small goldsmiths, who in turn aren’t supposed to pay excise duty.
Does it mean that jewellers have to pay excise duty, then? But, they are retailers too.
In the meanwhile, Anpazhakan informed, “For easy compliance, we have an online system for registration and payment of excise so that jewellers don’t have any interface with our department’s officers.”
