Jewellery stocks shine, gain up to 6.5%

Jewellery stocks today settled with up to 6.5 per cent gains after the government increased excise duty exemption limit for the small scale industry to Rs 10 crore from Rs 6 crore that could bring relief to gold jewellers.
On Wednesday, it also decided to waive the levy on sale of traded goods and relaxed other procedural norms.
Shares of Tara Jewels soared 6.45 per cent and Shree Ganesh Jewellery House jumped 6.43 per cent on BSE.
Tribhovandas Bhimji Zaveri rose by 2.47 per cent, PC Jeweller was up 2.83 per cent, Titan Company (2.61 per cent), Thangamayil Jewellery (1.88 per cent) and Gitanjali Gems (0.98 per cent).

During the day, these stocks had gained up to 10 per cent.
"Shares of jewellery makers remained upbeat in today's session after the government relaxed rules for tax on gold jewellery sales," Bonanza Portfolio Ltd, Head: Wealth Management and Financial Planning Achin Goel said.

In a relief to jewellers, the government yesterday increased excise duty exemption limit for small scale industry to Rs 10 crore from Rs 6 crore, waived the levy on sale of traded goods and relaxed various procedural norms.
Accepting the recommendations of a panel, the Finance Ministry yesterday 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).

In view of large-scale protests by jewellers following Budget proposal of 1 per cent excise duty on non-silver jewellery, the government had set up a sub-committee to interact with the industry on issues relating to compliance, maintenance of records and other administrative matters.
The government has also decided, independent of the committee's recommendations, to increase for jewellery manufacturers "the SSI eligibility limit from Rs 12 crore to Rs 15 crore and the SSI exemption limit from Rs 6 crore to Rs 10 crore in a financial year and Rs 85 lakh for March 2016".