1% excise duty applies to manufacture of all jewellery items-The Union Budget 2016-17 has proposed imposing a one per cent excise duty (without input tax credit) and 12.5 per cent (with input tax credit) on articles of jewellery.
There is about 22,000 MT of gold with households in India of which 600 MT is used for making jewellery. At least a part of it should accrue to the government as tax,” he reasoned, adding that it is an indirect levy and would be ultimately borne by the customer.