Jewellery-related stocks rose on Thursday after in a relief to jewellers, government on Wednesday increased excise duty exemption limit to Rs 10 crore from Rs 6 crore and waived off the levy on sale of traded goods and relaxed various procedural norms.
Reacting to the news, shares of jewellery companies surged in morning trade. At 11.08 am, PC Jeweller was trading up 3.05 per cent at Rs 382.30, Tribhovandas Bhimji Zaveri was up 2.89 per cent at Rs 72.90, Titan Company was trading 2.18 per cent up at Rs 413.00, Tara Jewels Ltd was trading 8.60 per cent up at Rs 40.40, Gitanjali Gems Ltd was trading 1.47 per cent up at Rs 41.40 and Rajesh Exports Ltd was trading 1.17 per cent up at Rs 454.50.
The Finance Ministry said no excise audit will be carried out, for the first two years, for units whose duty payment is less than Rs 1 crore (that is turnover of manufactured goods less than Rs 100 crore).
Finance Minister Arun Jaitley had proposed 1 per cent excise duty on non-silver jewelleries which saw large scale protests by jewellers. In the wake of this, the government had set up a sub-committee of the high-level committee to interact with trade and industry on issues relating to compliance, maintenance of records and other administrative matters.
Government has also exempted movement of jewellery for purposes other than sale from excise levy as recommended by a panel. Government also accepted the sub-committee’s recommendation of “no visit, search and seizure at job workers premises”.