Department/Board : Press Information Bureau

Date : 04.03.2016

Clarifications on levy imposed on jewellery

In this year's Budget, a nominal excise duty of 1% [without input tax credit] and 12.5% [with input tax credit] has been imposed on articles of jewellery. Even for this nominal 1% excise duty, manufacturers are allowed to take credit of input services, which can be utilised for payment of duty on jewellery.

Some doubts have been expressed by the trade and industry regarding this levy. In that context, salient features of this levy are explained as under:

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