Excise Duty

Excise Duty is a type of indirect tax levied on the production, manufacture, or sale of specific goods within a country. It's typically paid by the manufacturer or producer, but can be passed on to the consumer.

Types of Excise Duty:

• Central Excise Duty: Levied by the central government on goods manufactured in India.
• State Excise Duty: Levied by state governments on goods manufactured or sold within their territory.

How Excise Duty Works:

• Manufacture: Excise duty is levied on the production or manufacture of specific goods.
• Assessment: The duty is assessed based on the value or quantity of the goods.
• Payment: The manufacturer or producer pays the excise duty.
• Pass-on: The duty can be passed on to the consumer through higher prices.

Examples of Excise Duty:

• Alcohol and Tobacco: Excise duty is levied on the production and sale of alcohol and tobacco products.
• Petroleum Products: Excise duty is levied on the production and sale of petroleum products, such as gasoline and diesel.
• Luxury Goods: Excise duty can be levied on luxury goods, such as high-end jewellery and watches.