The government has rolled back its budget decision to charge 1% tax collection at source on cash purchase of gold jewellery. The revised rule will come to effect from tomorrow (June 1).
Notably, the decision to apply 1 percent excise duty on non-silver jewellery had invoked a nationwide jewellers strike.
Agitating jewellers and traders had pulled down their shutters on March 2 after Finance Minister Arun Jaitley in his budget speech proposed one per cent excise duty on non-silver jewellery on February 29.
At present, there is 10 per cent duty on import on gold. India is the world’s largest gold jewellery consumer. The country imports around 900 tonnes of gold annually.