As some jewellers have begun to come forward to register themselves with the tax authorities, the Government has decided to move one step forward with them too. It has promised that there will be no inspection of jewellers’ premises after registration.
The Government has also promised “zero interface” with the tax authorities. Chief Commissioner Excise, AK Gupta said on Tuesday, “We have promised them that no one will visit their premises.”
The Central Board of Excise and Customs has sent out a strong message that there will be no raids and authorities will also not seek any declaration of stock held before the Budget.
Jewellers went on strike after the levy was announced in the Budget 2016. Finance minister Arun Jaitley had on Monday made it clear that the levy was a precursor to the goods and service tax (GST), rejecting demands for a roll back. He had proposed the excise duty on jewellers having a turnover of over Rs 12 crore, thereby keeping small manufacturers and job workers out of the tax net. Many states already tax the sector.
Delhi, Assam, Bihar, Himachal Pradesh, Tamil Nadu, Rajasthan and Gujarat levy 1 per cent value added tax on gold jewellery while it’s 5 per cent in Kerala.
Jaitley said clear instructions had been issued to field officers that no inspector will enter the premises of jewellery makers because there is a provision of self-certification.