KGMA’s Guide to Excise Duty Levy on Jewellery under
Budget 2016[1]
In Budget
2016, 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. The salient
features of this levy are explained as under:
(a)
Easy compliance with provision for on line application for
