Govt announces relief for gold jewellery industry to offset excise duty levied in Budget

The government has announced fresh relief measures for gold jewellery industry to soften the impact of the excise duty levied in the budget. The eligibility limit for those facing the tax has been raised to `15 crore from `12 crore earlier and the government also accepted recommendations of former chief economic advisor Ashok Lahiri panel on host of procedural relaxations to give relief to the gold jewellery industry that had led a vociferous nationwide protest after imposition of excise duty in the budget this year.

“All these recommendations have been accepted by the government….. Independent of committee’s recommendations, the government has also decided to increase for manufacturers of articles of jewellery or parts of articles of jewellery or both the SSI eligibility limit from `12 Crore to `15 Crore and the SSI exemption limit from `6 Crore to `10 Crore in a financial year and `85 lakh for the month of March, 2016,” a Central Board of Excise and Customs statement said.

The sub-committee under Lahiri, who heads high-level panel on tax, was set up by the finance ministry after protests from jewellers on imposition of 1 per cent excise duty on gold and precious jewellery in budget.

Courtesy: The Economic Times