Friday, July 29, 2016

Excise Duty on Jewellery – 15 things you should know

The Central Government proposed to impose excise duty on manufacturing of jewellery except silver jewellery (other than studded with diamond and precious stones) in the Union Budget. However, the jewellers protested against such levy of excise duty. They went on strike across the Country demanding withdrawal of excise duty levy on jewellery. Finally the Govt. did not change its stance and retained such levy in the Finance Act, 2016.

Now the rate of excise duty on jewellery is 1% if assessee does not avail of any credit on inputs and capital goods. However, the rate of excise duty will be raised to 12.5% if assessee avails of credit on inputs and capital goods. Recently the CBEC has issued set of Circulars and Notifications with regard to excise duty on

Jewellery. Key takeaways from such Circulars/Notifications are given here under: