CA Bhavin Mehta
Excise Duty Applicability on articles of Jewellery
- Applicable to Articles of Jewellery (excluding silver jewellery, other than studded with diamonds/precious metal stones)
- Jewellery manufacturers having turnover of more than Rs. 12 crore in the previous financial year 2014 – 15 shall not be eligible for SSI exemption.
- If the value of clearances in the preceding financial year 2014–15 is less than 12 crore, no Central excise duty shall be payable on 1st clearances up to Rs. 6 crore.
- The eligibility for availing of SSI exemption in 2015–16 for the month of March 2016 is that the value of clearances for home consumption from one or more manufacturer from one or more unit, should not exceed RS. 50 lakhs in the previous financial year 2014–15.
- The computation of SSI exemption should be backed by Chartered Accountant certificate based on the books of accounts of 2014–15.
- Similarly, for determining the eligibility for availing SSI exemption for the financial year 2016 – 17, a certificate from Chartered Accountant shall suffice.
Stock declaration: –
- Excisable goods which were produced on or before 29.02.2016, but lying in stock as on 29.02.2016 shall attract excise duty at the time of clearance.
- Manufacturers who intend to avail Cenvat credit on inputs or inputs contained in goods lying in stock shall keep the stock declaration of finished goods, goods in process & inputs, as on 29.02.2016 duly certified by Chartered Accountant.
- No stock declaration will be required to be made to the jurisdictional Central excise authorities.
Simplified procedure & guidelines:-
- Central excise registration shall be granted within 2 working days.
- Post registration no physical verification of the premises shall be done.
- Documents maintained by jewellery manufacturers for State VAT or Bureau of Indian Standards (in case of hallmarked jewellery) shall be sufficient for Central excise purpose.
- No separate RG 1 Or a Daily Stock Account as required under rule 10 Of the Central Excise Rules, 2002 , is required. Private records giving details of daily stock shall be accepted.
- Provision of optional Centralised Central Excise Registration for manufacturers having centralised billing for accounting system is being introduced.
- Simplified return i.e ER 8 shall be applicable to jewellery manufacturers.
- Liability to pay Central excise duty shall be on the person who gets goods manufactured from the job worker. Principal Manufacturer (and not the job worker) will be required to get registered with the Central excise & pay duty & follow other compliance requirements.
- Small artisans/goldsmiths are not required to take a new Central excise registration.
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