Excise duty on jewellery: Registration deadline for jewellers extended till July 31, says CBEC

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The sub-committee headed by Ashok Lahiri formed to interact with trade and industry representatives on the imposition of central excise duty on jewellery has submitted its report to the finance ministry last week.

Among the various recommendations made by the panel was the suggestion to extend the registration deadline for jewellers by a month, which was announced by the Central Board of Excise and Customs (CBEC) on Friday.

According to the circular issued by the CBEC, the deadline for jewellers to get registered with the central excise department was extended till July 31. Also, the circular said that jewellers can settle the excise dues for March-May along with that of June payments by July 31.

In April, the sub-committee was formed under the high-level committee to interact with trade and industry on the Budget announcement of imposition of 1 per cent excise duty on jewellery. Along with former chief economic adviser Lahiri, the committee also consisted of representatives of gold traders, one legal expert and officials from commerce ministry and CBEC.

The Union Budget for 2016-17 had announced levy of 1 per cent excise duty, without input tax credit, and 12.5 per cent excise duty with input tax credit on all articles of jewellery. The announcement was followed by over two-week long strike by jewellers, prompting the finance ministry to give assurances to the jewellers about minimum interface with the tax department. Also, the finance ministry had announced procedures to be followed till the finalisation of recommendations of the committee, which included not challenging the valuation regarding purity or weight of gold or silver given in the invoice and an assurance of no arrest or criminal prosecution or search or seizure of stocks.

Jewellers with a turnover of more than Rs 12 crore during the preceding financial year will be liable to pay the excise duty.

Lahiri Panel report submitted/.

* The sub-committee, formed in April, to interact with industry representatives on the imposition of central excise duty on jewellery submitted its report to the finance ministry last week

* Along with former CEA Ashok Lahiri, the panel also consisted of representatives of gold traders, a legal expert, commerce ministry and CBEC officials.

Read more at: http://indianexpress.com/article/business/commodities/excise-duty-on-jewellery-registration-deadline-for-jewellers-extended-till-july-31-says-cbec-2888516/