Excise on Gold – Inspector Raj?
GOLD shutters have been pulled down for the last few days in protest against the excise duty. The so-called high duty is about Rs. 30 on a purchase of Rs. 10,000. Then what is this hungama about?
CBEC has clarified that, “The trade has expressed apprehensions that the levy would result in “inspector raj'. It would be recalled that the Government has already prescribed a simple one-page return for all units manufacturing excisable goods under the 1% scheme. This is a quarterly return which can be filed electronically. Since gold jewellery is leviable to State VAT, these units are already maintaining records/ accounts for that purpose. No separate records have been prescribed under Central Excise law”.
So, the real fear is “inspector Raj”!. Even friendly visits by Central Excise Officers to gold shops can be a real worry for the glittering business.
Please see our Budget Analysis for a detailed analysis of the issue by a Central Excise Officer.