The Union Budget 2011 has imposed an Excise Duty of 1% on jewellery and articles make of gold and/ or precious metals.
GJF has taken up the issue with concerned departments and ministries in New Delhi immediately. A 12-member GJF delegation met with the authorities on 4th and 5th March 2011.
We have been informed that the earlier circular dated 29th December 2005 and march 2005 are still valid until expressly rescinded by the Union Government. Therefore same is valid currently.
The officials also have stated that no officers/ departments are to collect excise duty from bonafide non-branded jewellers. If any unwarranted action or visits are undertaken by any departments in the country in order to collect in in appropriate manner where duty is demanded from unbranded jewellers/ products please report same to GJF office "firstname.lastname@example.org" or to the Mumbai address so GJF can inform the concerned authorities in New Delhi.
We also enclose the circular of 29th December 2005 for your records which you can show to any officers if required which is still valid.
However each jewellery establishment needs to take legal opinion where necessary and act accordingly as bonafide brands need to apply excise duty.
Hope this helps.
- Coins : coins with brand name will attract duty. Bullion and bars do not attract duty.
- Names other than firm/ company marked with a name will attract duty.
- Unmarked jewellery : no duty.
- Duty is paid by manufacturer if he sells branded jewellery. With declaration letter from manufacturer retailer need not pay second time.
- Retailer or manufacturer may for branded jewellery pay at their option.