Excise Duty

Excise Duty

Subject: Economy

Concept:

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.

Union Excise Duty: This is a duty on manufactured goods, which is levied at the time of manufacture.

Union Excise Duty and GST: Excise duty is imposed in addition to an indirect tax such as goods & services tax (GST), sales tax or value-added tax (VAT).

Eg: Petrol and Diesel

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.