In a bid to calm the frayed nerves of jewellers agitating against imposition of 1% excise duty, the finance ministry on Friday said artisans and job workers will not have to pay this levy. Following a meeting of representatives of jewellery industry with the revenue secretary, the finance ministry said, “Artisans and job workers are not covered (by) this duty and thus they are not required to take registration, pay duty, file returns and maintain any books of account.”
In their meeting with revenue secretary Hasmukh Adhia on Thursday, the jewellery industry representatives contended that re-imposition of levy will bring back the regime of the erstwhile Gold Control Act leading to harassment of jewellers, especially artisans and small goldsmiths. They are also worried that the levy would bring back the days of inspector raj and demanded that the exemption limit be increased to Rs 10 crore from Rs 6 crore in a year. The ministry clarified that the exemption of excise duty up to the clearance limit of Rs 6 crore will be available to a jewellery manufacturer if his aggregate value of domestic clearances is less than Rs 12 crore in the preceding financial year.
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