Centralised Registration in Central Excise for Jewellery In order to make more inclusive the taxation process and progress towards Goods and Services Tax in the year 2017, the Finance Minister Arun Jaitley has planned a levy of excise duty at the rate of 1% devoid of input tax credit and 12.5 % with input tax credit on articles of jewellery exclusive of silver jewellery, other than studded with diamonds/other precious stones. Nevertheless, a jewellery manufacturer will be appropriate for exemption from excise duty on first clearances up to Rs. 6 crore for the duration of a financial year, if his total domestic clearance during the preceding financial year was found to be lesser than Rs.12 crore. There is some conflict amongst the jewellers against the new proposal offered. In a proposal to calm down jewellers with Single/Centralised Registration in Central Excise for Jewellery, the CBEC promised zero physical interfaces with tax officials, trouble free registration etc. The Government has also determined to comprise a subcommittee of the High level committee to learn the issues in this regard. It has further been asserted that the move is intended at including gold jewellery within the tax net in the process of Centralised Registration, in preparation of the goods and service tax regime (GST) and monitoring of black money were the only elements of the reason. Whether particulars of all the premises (including that of job work) required to be given in the application for Centralised registration in Central Excise for Jewellery? Manufacturer choosing centralised registration is made essential to supply details of all the premises where manufacturing activities are performed. Nevertheless, details of job worker premise are not necessary to be given. Is Centralised registration allowed when the assessee has numerous manufacturing units? A notification allowing for a voluntary centralized central excise registration for Jewellery manufacturers with central billing or accounting system is being issued under the Rule 9(2) of the Central Excise Rules created in the year 2002. The manufacturer having a centralised billing or accounting system could choose registering only the factory or premises or office, from where such centralised billing or accounting is completed and where the accounts/records mentioning receipts of raw materials and finished excisable goods produced or received back from job workers are retained. In the occurrence of a Manufacturer obtaining centralised registration at his showroom, is it deemed essential to bring the goods to the showroom from the workshops on the basis of excise invoice? The workshops are locations of manufacture i.e. factory. The showroom i.e. centralised registered place is the single place of removal. Consequently, the goods should shift from the place of manufacture (workshop) to place of registration (showroom) on the basis of excise invoice. The invoice shall be increased from registered premise and transferred to workshop to go along with the goods during the process of physical movement. What is the alternative to centralized registration? Manufacturer may acquire separate registration for each and every of his workshops (factories) as an alternative to obtaining centralised registration. Which option is better, that of centralised registration or separate registration? It is dependent upon the business model being pursued by the manufacturer. In a broad spectrum, it could be recommended to make one of the workshops at the nodal workshop where all the records are maintained. This could not insist on the requirement to take the process of registration at showroom which may be utilised completely for trading of goods received from the workshops along with goods bought from others for the purpose of trading. The showroom may be registered as Input Service Distributor to give out the credits on the input services to the workshops.
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