The All India Gems and Jewellery Trade Federation along with representatives from associated jewellery association have extended its strike against levy of excise till Monday.
A day after the Budget, the federation had announced that all the jewellers will down shutters till Saturday. Senior officer bearers of the federation called for an extension of the strike till March 7 to protest against the Government’s adamant attitude to implement excise duty in the gems and jewellery sector.
Over three lakh jewellers participated in the strike for the last three days. The size of domestic industry is estimated at about Rs 3.15 lakh crore with the potential to grow to Rs 5 lakh crore by 2018. Another jewellers' association, the Indian Bullion and Jewellers Association, is on indefinite strike since last three days.
The Union Budget had imposed an excise duty of one per cent on gems and jewellery sector without input credit and 12.5 per cent with input credit. The industry claims that it cannot comply with the due diligence and requirements as proposed under the Excise Act as the manufacturers of gems and jewellery are in no position to follow up with even the minimum provisions applicable.
GJF had a meeting with the Prime Minister and submitted their representation, highlighting the foreseeable plight of jewellers following the imposition of exercise duty, the federation said in a statement on Friday.
GV Sreedhar, Chairman, GJF, said the excise guidelines, which have been drafted for the gems and jewellery, are not practically implement able and will be detrimental to the survival of the industry.
Ashok Minawala, past-Chairman and Director, GJF, said the excise regime would impact the very livelihood of the millions of Karigars and Goldsmiths.
The retail jewellery sector is apprehensive to be known as manufacturers and register for excise. This will lead to confusion and chaos, leading to large-scale of discrimination amongt various sectors that will result in unemployment in this industry, he said.