FinMin sets up sub-panel on excise duty on jewellery

The finance ministry has constituted a sub-committee under the already functioning Ashok Lahiri panel to interact with the trade and industry on the imposition of central excise duty on jewellery.

The committee will comprise Gautam Ray, a former tax official in the finance ministry; Rohan Shah, a legal expert; Manoj Kumar Dwivedi, a joint secretary in the department of commerce; and Alok Shukla, a joint secretary in the tax research unit in the Central Board of Excise and Customs, an official statement said on Friday.

Representatives from the trade will be appointed to the sub-committee shortly. The committee will consider all issues related to compliance procedure for excise duty, records to be maintained, operating procedures, and all other relevant issues.

"All associations, trade and industry will be given an opportunity to submit their representations before the sub-committee in writing. All India associations will also be given an opportunity to state their case in person," said the statement.

An impasse between the finance ministry and jewellers over one per cent excise duty imposed in the Budget for 2016-17 had earlier led to a strike by jewellers, which was called off after assurance by the ministry that no harassment would be made over the issue.

The high-level committee, headed by former chief economic adviser Ahok Lahiri, is already there to interact with trade and industry on tax-related issues on a regular basis and ascertain areas where clarity in tax laws is required.