On Wednesday, it also decided to waive the levy on sale of traded goods and relaxed other procedural norms.
Shares of Tara Jewels soared 10.21 per cent, Shree Ganesh Jewellery House 9.5 per cent and Gitanjali Gems 4.53 per cent on BSE.
Tribhovandas Bhimji Zaveri rose 4.3 per cent, PC Jeweller 3.53 per cent and Titan Company 2.77 per cent.
Accepting the recommendations of a panel, the Finance Ministry yesterday said no excise audit will be carried out for the first two years for units whose duty payment is less than Rs. 1 crore (that is turnover of manufactured goods less than Rs. 100 crore).
In view of large-scale protests by jewellers following Budget proposal of 1 per cent excise duty on non-silver jewellery, the government had set up a sub-committee to interact with the industry on issues relating to compliance, maintenance of records and other administrative matters.
The government has also decided, independent of the committee’s recommendations, to increase for jewellery manufacturers “the SSI eligibility limit from Rs. 12 crore to Rs. 15 crore and the SSI exemption limit from Rs. 6 crore to Rs. 10 crore in a financial year and Rs. 85 lakh for March 2016″.