Branded gold coins may become cheaper after the government scrapped 1 per cent excise duty on them. In a notification, the Central Board of Excise and Customs (CBEC) said excise duty will be nil on gold coins of purity 99.5 per cent and above, bearing a brand name when manufactured from gold on which appropriate duty of Customs or excise has been paid.
Excise duty on branded silver coins continues to be exempted. However, articles of goldsmiths or silversmiths’ wares of precious metal or of metal clad with precious metal, bearing a brand name will attract 1 per cent excise duty. PC Jeweller Managing Director Balram Garg said excise duty on branded coins has been abolished. Earlier, it was 1 per cent. “The move will make branded coin cheaper and promote organised industry,” Garg said.
Excise duty of 1 per cent on branded gold coin was levied in 2011. “Many jewellers do not manufacture branded coins so there will not be any impact. However, we welcome the move,” said Bachhraj Bamalwa, former president, All India Jewellery Federation. “Excise duty was exempted to those who manufactured coins, having purity of 99.5 per cent, with imported gold and have already paid Customs duty. Since MMTC was making gold coins under the Gold Monetisation Scheme, it was subject to one per cent excise duty,” a senior MMTC-Pamp (India) official said.
MMTC-Pamp was unable to produce Customs duty receipt and hence was subject to 1 per cent excise duty. Now with this notification, there will be no excise duty on branded coins manufactured under GMS, he said.
Source: http://indianexpress.com/