Shares of major jewellery-making companies rallied on Thursday as the government relaxed excise duty rules for jewellery manufacturers. Shares of Tara Jewels, Shree Ganesh Jewellery, Goenka Diamond and Jewels among others were up between 5% and 8%. On a two-week high, shares of Tara Jewels closed at `40.15, up 7.93%, the highest single day percentage gain in the last two weeks. Goenka Diamond and Jewels was up 5%, closing at a one-week high.

Other jewelers like Tribhovandas Bhimji Zaveri, Thangamayil Jewellery, PC Jeweller and Alankit among others, closed the Thursday trading session up between 2% and 3%. The press release issued by the government stated that an excise duty of 1 % without input and capital goods tax credit or 12.5 % with credit may apply to parts of articles of jewellery, made of platinum, gold and silver.

The government also stated that no excise audit may be carried out, for the first two years, for units whose duty payment is less than `1 crore, that is turnover of manufactured goods less than `100 crore. The government has decided to increase the small scale industry (SSI) exemption limit from `6 crore to `10 crore in a financial year and `85 lakh for the month of March, 2016. The SSI eligibility limit has been increased from `12 crore to `15 crore.

Jewellers will not have pay excise duty on movement of jewellery, which does not involve sale. Among the rules approved, the press release stated “No visit to premises of the principal manufacturer (jeweler), except on the basis of specific intelligence and with the approval of commissioner or equivalent rank officer.