Centre’s move to relax SSI norms for Jewellers gave SMEs a sigh of relief
New Delhi, July 14 (KNN) The Finance Ministry has decided to increase the Small Scale Industry (SSI) eligibility limit for manufacturers of jewellery articles from Rs.12 crore to Rs.15 crore and also raise the SSI exemption limit from Rs.6 crore to Rs.10 crore in the financial year 2016-17.
The jewellers’ associations expressed their relief with regard to the acceptance of these recommendations which were submitted by the sub-committee on June 23.
In view of large scale protests by jewellers following a Budget proposal of one per cent excise duty on non-silver jewelleries, the government had set up a sub-committee of the high-level committee to interact with trade and industry on tax laws and on issues relating to compliance, maintenance of records and other administrative matters.
Subject to these recommendations proposed by the panel, the Finance Ministry on Wednesday said no excise audit will be carried out, for the first two years, for units whose duty payment is less than Rs. 1 crore (that is turnover of manufactured goods less than Rs. 100 crore).
‘Similarly, repairs and alterations that do not change the identity, character and use of the goods and do not result in the manufacturing of a new item may not attract excise duty ‘, said the Ministry in a release on Wednesday.
The press release by the ministry also says that no excise duty may be payable on the sale of traded goods and that there will be no requirement to submit any ground plan of the premises for taking Excise registration.
Talking to KNN, Ketan Shroff, Spokesperson, India Bullion and Jewellers Association of India said, ”It is indeed very good news for our industry. Hiking the SSI exemption limit to Rs. 10 crore and the SSI eligibility limit to Rs. 15 crore independent of Committee’s recommendations is a very positive step to relax the Excise registration.”
Thus, the timely acceptance of the proposed recommendations and the amendments in SSI norms independent of the Committee’s recommendations has relieved the jewellers and the SMEs in the same field. (KNN/ GK)