Jewellers are likely to protest against the government's new rule which mandates that customers produce permanent account number (PAN) for purchases of Rs 2 lakh and above. The revised rule has come into effective from 1 January, 2016.
In December last year, the Finance Ministry had reduced the purchase limit for quoting PAN to Rs 2 lakh per transaction from Rs 5 lakh as part of its efforts to check the menace of black money.
Jewellers' associations from across the country had a meeting on Friday to discuss on the government's decision to revise the limit, as they saw 25-30% drop in their business from it.
"We are planning to take representation to the finance minister and the finance secretary in two-three days and urge them to make the PAN card mandatory on jewellery purchase of over Rs 10 lakh instead of the present Rs 2 lakh," All India Gems and Jewellery Federation (GJF) Chairman Sreedhar GV told Press Trust of India.
Jewellery and watch-maker Titan Co estimates its income to come down about Rs 500 crore in the current fiscal due to PAN requirement for transactions of Rs 2 lakh.
Titan Co Managing Director Bhaskar Bhat said this week Titan sales have already come under pressure from the earlier limit of Rs 5 lakh, without disclosing the exact figures.
"If the government does not take action, there will be protests in a major way. Things are not looking up and many associations are discussing candle-light marches and strike," GJF Director Ashok Minawala said.
Bhat claimed the company has not "resorted to means circumvent the rule" by splitting the bill.
"We are suffering on account of that. We do not break up bill as Rs 1 lakh and Rs 1 lakh and then sell," he said.