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Excise Duty

About Excise Duty

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What is Excise Duty

Excise duty is a form of tax imposed on goods for their production, licensing and sale. An indirect tax paid to the Government of India by producers of goods, excise duty is the opposite of Customs duty in that it applies to goods manufactured domestically in the country, while Customs is levied on those coming from outside of the country.
 
At the central level, excise duty earlier used to be levied as Central Excise Duty, Additional Excise Duty, etc. However, the Goods and Services Tax (GST), introduction in July 2017, subsumed many types of excise duty. Today, excise duty applies only on petroleum and liquor.
 
Excise duty was levied on manufactured goods and levied at the time of removal of goods, while GST is levied on the supply of goods and services.
 
Alcohol does not come under the purview of GST as an exclusion mandated by constitutional provision. States levy taxes on alcohol according to the same practice as was prevalent before the rollout of GST.
 
After GST was introduced, excise duty was replaced by central GST because excise was levied by the central government. The revenue generated from CGST goes to the central government.

The Budget estimate of the government's excise duty revenue for the year 2020-21 was Rs 2,67,000 crore. The revised estimates of excise duty for the 2019-20 Budget came at Rs 2,48,000 crore, while the actuals for the 2018-19 Budget stood at Rs 2,30,992 crore.
 
Types of excise duty in India
 
Before GST kicked in, there were three kinds of excise duties in India.
 
Basic Excise Duty
 
Basic excise duty is also known as the Central Value Added Tax (CENVAT). This category of excise duty was levied on goods that were classified under the first schedule of the Central Excise Tariff Act, 1985. This duty was levied under Section 3 (1) (a) of the Central Excise Act, 1944. This duty applied on all goods except salt.
 
Additional Excise Duty
 
Additional excise duty was levied on goods of high importance, under the Additional Excise under Additional Duties of Excise (Goods of Special Importance) Act, 1957. This duty was levied on some special category of goods.
 
Special Excise Duty
 
This type of excise duty was levied on special goods classified under the Second Schedule to the Central Excise Tariff Act, 1985.

Latest Updates on Excise Duty

Gas from legacy fields used to meet 90 per cent of the demand for CNG in May 2023 and has progressively fallen

Updated On: 20 Oct 2024 | 11:16 AM IST

On March 20, the top court noted that the businessman had been in custody for 18 months and directed his release on interim bail for five weeks

Updated On: 13 Oct 2024 | 3:32 PM IST

After the agreement of the government with the IT firm ended, the ESCIMS was being operated by the Excise department itself

Updated On: 04 Oct 2024 | 7:06 AM IST

The court granted bail to AAP leader Durgesh Pathak in the corruption case related to the alleged excise scam, being probed by the CBI, but extended Kejriwal's custody

Updated On: 11 Sep 2024 | 7:07 PM IST

According to the CBI and the ED, irregularities were committed while modifying the excise policy and undue favours extended to licence holders

Updated On: 23 Aug 2024 | 12:40 PM IST

Overall tax contribution of the petroleum sector rose marginally to Rs 7.51 trillion

Updated On: 16 Aug 2024 | 8:18 PM IST

Special Judge Kaveri Baweja passed the order after Sisodia was produced before the court on expiry of his judicial custody granted earlier

Updated On: 22 Jul 2024 | 5:38 PM IST

Special judge Kaveri Baweja has directed that Delhi Chief Minister Kejriwal be physically produced in court on Friday, following the submission of the ED's seventh supplementary chargesheet

Updated On: 09 Jul 2024 | 4:37 PM IST

The Rouse Avenue Court of Delhi on Saturday sent Delhi Chief Minister Arvind Kejriwal to Judicial custody in connection with Excise policy case

Updated On: 01 Jul 2024 | 3:56 PM IST

The sources said a fresh and the ninth prosecution complaint (charge sheet) was filed before a special Prevention of Money Laundering Act (PMLA) court

Updated On: 28 Jun 2024 | 5:44 PM IST

Special Judge Amitabh Rawat passed the order on an application moved by the CBI. The probe agency formally arrested Kejriwal on Wednesday after getting permission from the court

Updated On: 27 Jun 2024 | 1:05 AM IST

The vacation bench of Justice Sudhir Kumar Jain, while passing the order, said that documents and arguments were not appreciated properly by the trial court properly

Updated On: 25 Jun 2024 | 11:48 PM IST

The Delhi High Court earlier in the day stayed the trial court order granting bail to Kejriwal in the money laundering case stemming from the alleged excise policy scam in Delhi

Updated On: 25 Jun 2024 | 3:49 PM IST

One of the lawyers of the chief minister said that they will be seeking urgent listing of the petition on Monday

Updated On: 23 Jun 2024 | 10:22 PM IST

ED has challenged the order dated June 20, 2024, passed by Special Judge (Vacation Judge), Rouse Avenue District Courts that granted bail to Kejriwal

Updated On: 21 Jun 2024 | 2:19 PM IST

Delhi court grants bail to Kejriwal on bail bond of Rs 1 lakh

Updated On: 20 Jun 2024 | 9:06 PM IST

At present, Central Excise is levied mainly on petroleum products. As a part of the pre-legislative consultative process, CBIC has sought stakeholders' comments by June 26

Updated On: 04 Jun 2024 | 10:24 PM IST

Kavitha has challenged the trial court's May 6 order by which her bail applications in the CBI's corruption case as well as the ED's money laundering case were dismissed

Updated On: 24 May 2024 | 6:30 PM IST

Special Judge for ED and CBI cases, Kaveri Baweja, who was likely to take up the charge sheet for cognisance on Monday, adjourned the matter for May 14

Updated On: 13 May 2024 | 7:54 PM IST

In a fresh affidavit filed in the top court, the ED said no political leader has ever been granted interim bail for campaigning even if he is not contesting polls

Updated On: 09 May 2024 | 5:28 PM IST