GJF hopes govt will hike limit of PAN card furnishing for gold purchases

All India Gems and Jewellery Trade Federation (GJF), the apex body of the domestic gems and jewellery sector, is hopeful that the government will consider hiking the limit for mandatory PAN card furnishing on purchases above Rs 2 lakh.

“We have been in touch with the government and held various meeting with the government over the issue of mandatory PAN furnishing on gold purchases above Rs 2 lakh. The association is hopeful that the government will consider a hike in this limit as it has impacted gold purchases,” GJF director Ashok Minawala told DH.

The government had, late last year, made it mandatory to quote PAN number in case of gold purchases of Rs 2 lakh and above. GJF also expressed happiness over the government's recent move to hike the small scale industry (SSI) exemption limit for jewellery manufacturers. “About 80-85% of the jems and jewellery manufacturers are likely to benefit due to a hike in the SSI limit announced by the government recently,” Minawala said.

On July 13, 2016, the Union Finance Ministry announced that it has accepted the High Level Committee (chaired by Ashok Lahiri, along with CBEC and Excise consultant and in which GJF Director Ashok Minawala represented the jewellery trade along with two more members from the trade) recommendations.

The Ministry also increased for jewellery manufacturers “the SSI eligibility limit from Rs 12 crore to Rs 15 crore and the SSI exemption limit from Rs six crore to Rs 10 crore in a financial year and Rs 85 lakh for March 2016, from the earlier Rs 50 lakh.”

Meanwhile, GJF has decided to organise pan-India seminars for jewellers to guide them on new excise duty norms.


 “The seminar will touch upon issues such as excise duty levies without input, capital goods tax credit with credit; no excise duty may be payable on the sale of traded goods; records maintained for State VAT and other private records, showing details of inputs, stocks, manufactured goods, sold/exported goods, etc, to be accepted for excise purposes; stock details to be maintained on weight and caratage basis, movement of jewellery, transit checks, excise duty on value additions in case of converted jewellery,” Minawala said.