Jewellers in the national capital today temporarily called off their 42-day strike, demanding rollback of proposed excise duty on non-silver jewellery, for 12 days after the government's assurance that there will be no harassment by excise officials.
"We have decided to temporarily call off the strike till April 24 after the government's assurance," Surinder Kumar Jain, Vice-President of All India Sarafa Association told PTI.
Jewellers in Maharashtra have also called off their strike temporarily from April 14 to April 24, Maharashtra Rajya Saraf Suvarnakar Federation President Fatechand Ranka said.
Jewellery houses remained closed since March 2 after Finance Minister Arun Jaitley in Budget proposed levying 1 per cent excise duty on non-silver jewellery.
Jewellers, bullion traders and artisans reopened their establishments yesterday in Rajasthan, said Subhash Mittal, President, Rajasthan Sarafa Sangh in Jaipur.
"If the government does not consider our demand of rolling back its decision of imposing 1 per cent excise duty, we will resume our strike from April 25," said Ram Avtar Verma President of Bullion and Jewellery Association.
Meanwhile, jewellers in Meerut also reopened their shops today.
The gems and jewellery industry is estimated to have incurred over Rs 1 lakh crore loss due to the 42-day strike.
Over three lakh jewellers from more than 300 associations kept their establishments closed across the country since March 2.
Jewellers are also against the mandatory quoting of PAN by customers for transactions of Rs 2 lakh and above.
The Centre has already constituted a panel under former Chief Economic Advisor Ashok Lahri to look into the demands of the jewellers.
The panel, which has been asked to submit its report in 60 days, will look into issues related to compliance procedure for the excise duty, including records to be maintained, forms to be filled, operating procedures and other relevant issues.
The government, in Budget 2016-17, had proposed 1 per
cent excise duty on jewellery without input credit or 12.5 per cent with input tax credit on jewellery excluding silver other than those studded with diamonds and precious stones.
"Excise duty of 1 per cent without input and capital goods tax credit or 12.5 per cent with credit may apply to parts of articles of jewellery, made of platinum, gold and silver," the government said while accepting the sub-committee's recommendations submitted to it on June 23.
Also, there will be no requirement to submit any ground plan of premises for taking Excise registration and the excise duty on jewellery is payable at first sale invoice value.
"No excise duty may be payable on the sale of traded goods; (also) records maintained for State VAT and other private records, showing details of inputs, stocks, manufactured goods, sold/exported goods, etc to be accepted for excise purposes. Stock details to be maintained on weight and caratage basis," it said.
Movement of jewellery, which does not involve sale (for example, movement of jewellery, to be shown as samples, branch transfers not involving sale, for display in exhibition, for hallmarking, and for approval before sale) will not be liable to excise duty. No transit checks by excise officers.
"When a retail customer brings jewellery (other than in form of gold or any precious metal) to a jeweller which is converted into new jewellery by the jeweller or a job worker of such jeweller, excise duty will be payable only on value addition, including cost of additional materials and labour charges charged, subject to the maintenance of certain records," the government said.
Further, "an optional scheme may be prescribed" for jewellers who are not able to maintain separate physical stocks and/or records of manufactured and traded goods.
For availing the optional scheme, a principal manufacturer of jewellery should maintain separate stocks on weight and/or carat basis separately for -- silver studded jewellery, gold or platinum jewellery studded with diamonds and other gold or platinum jewellery.
The sub-commitee's recommendation of "no visit, search and seizure at job workers premises" has also been accepted by the government.
"No visit to premises of the principal manufacturer (jeweller), except on the basis of specific intelligence and with the approval of Commissioner or equivalent rank officer" is another major suggestion which has been accepted.
Summons may be issued only with the approval of Commissioner, the Ministry added.
In a tweet, Revenue Secretary Hasmukh Adhia said: "The report of Laheri committee is also accepted by Govt in toto about procedural aspects of the levy". The sub-committee was chaired by Ashok Lahiri.
