Jewellery Shares Shine After Relaxation In Excise Duty Norms

Cheering the government's move to relax excise duty norms on gold jewellery sales, shares of gold jewellers outperformed the markets today. 

According to the new rules, jewellers with turnover up to Rs 15 crore a year will be exempt from the excise duty. Earlier, the exemption limit was for jewellers with turnover up to Rs 12 crore.

Further, according to the new norms, in the first two years, government agencies will not audit jewellers that have turnover of less than Rs 100 crore.

Jewellers had gone on strike for six weeks after the government imposed 1 percent excise duty on gold jewellery from March onwards.

To address jewellers concerns the government formed a committee and accepted its recommendation.

As of 11:38 a.m., shares of Tara Jewels (up 8.2 per cent to Rs 40.30), PC Jeweller (up 2.88 per cent to Rs 382), Titan (up 2 per cent to Rs 413), Shree Ganesh Jewellery House (up 3.55 per cent to Rs 7.30), Gitanjali Gems (up 1.72 per cent to Rs 41.40) and Rajesh Exports (up 1.2 per cent to Rs 455) outperformed the Nifty which was down 0.1 per cent.

(With agency inputs)