Finally, the ghost of Excise Duty has been lifted over (partially) from the Gem & Jewelry industry in India. SIGH.
Last year, around this time, Union Budget of India, 2011 was announced, the parchment of paper that decides how the economy of India will function, at least for the next 1 year. Last year it brought a shock to the complete gem & jewelry industry when the Indian Government announced a 1% Excise Duty on all branded jewelry in the country.
It was expected not to affect more than 90% of the jewelers in the country as they are not brands, but independent retailers in the country.
Here is what brought the shock, Excise Department started considering all jewelers as brands who had even printed their (company) names on the Jewelry boxes! That included over 95% of the jewelers in India!
That means, some law that was supposed to affect only about 10% of the complete gem & jewelry business in the country suddenly started affecting more than 95% jewelers in the country. Jewelers in the country were so harassed due to this that there was a national level jeweler strike called by GJF, the largest organization of jewelers in India, which comprises of even some the most renowned jewelers (parent companies in some cases) of India, including, C.K.C. & Sons, Jewelove, Ganjam etc.
Last year was a pretty bad year for most jewelers in India (financially & otherwise, for reasons mentioned in this post).
Thankfully, at least the excise duty issue has been cleared this year.
Finance Ministry of India has issued a clarification on the definition of brands (for jewelry sector) this year, only jewelers who engrave their name or company name on the jewelry will be considered as a brand & not those who only print (or otherwise indicate) their (company) name on their display & packaging material.
Good news for the gemstone & jewelry sector in India.
There are still many challenges for the gemstone & jewelry business in India, but at least one issue is past us.
Last year, around this time, Union Budget of India, 2011 was announced, the parchment of paper that decides how the economy of India will function, at least for the next 1 year. Last year it brought a shock to the complete gem & jewelry industry when the Indian Government announced a 1% Excise Duty on all branded jewelry in the country.
It was expected not to affect more than 90% of the jewelers in the country as they are not brands, but independent retailers in the country.
Here is what brought the shock, Excise Department started considering all jewelers as brands who had even printed their (company) names on the Jewelry boxes! That included over 95% of the jewelers in India!
That means, some law that was supposed to affect only about 10% of the complete gem & jewelry business in the country suddenly started affecting more than 95% jewelers in the country. Jewelers in the country were so harassed due to this that there was a national level jeweler strike called by GJF, the largest organization of jewelers in India, which comprises of even some the most renowned jewelers (parent companies in some cases) of India, including, C.K.C. & Sons, Jewelove, Ganjam etc.
Last year was a pretty bad year for most jewelers in India (financially & otherwise, for reasons mentioned in this post).
Thankfully, at least the excise duty issue has been cleared this year.
Finance Ministry of India has issued a clarification on the definition of brands (for jewelry sector) this year, only jewelers who engrave their name or company name on the jewelry will be considered as a brand & not those who only print (or otherwise indicate) their (company) name on their display & packaging material.
Good news for the gemstone & jewelry sector in India.
There are still many challenges for the gemstone & jewelry business in India, but at least one issue is past us.
Hope for a better budget for the gem & jewelry industry this year.
