WHAT IS EXCISE DUTY

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.
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.
RELATED BUDGET TERMS
EXCISE DUTY NEWS
-
Excise duty collection jumps 48% this fiscal on record hike in fuel taxes
While the pandemic pummelled tax collection across the board, excise duty mop-up jumped 48 per cent in the current fiscal on the ...| January 17, 2021, Sunday -
Budget Byte: How far will fuel excise duty help govt's fiscal plans?
Though high priced than before, petrol and diesel consumption came back to pre-Covid levels in recent months| January 08, 2021, Friday -
Excise duty mop-up grows 34% in H1; overall revenue collection down 22%
Overall revenue collection down 22% in Apr-Sept| November 07, 2020, Saturday -
UP, Karnataka, TN hike duty on liquor as buffer for Covid-19 loss
UP govt also raises tax on petrol and diesel| May 06, 2020, Wednesday -
OMC earnings to take 10-27% hit as govt raises duties, bars fuel price hike
Marketing margins to be squeezed by 64%; companies did not pass on the benefits of lower global petroleum prices to consumers| May 06, 2020, Wednesday -
ITC shares fall 6% amid concerns on stake sale, possible tax hikes
Shares of Axis Bank also fell as much as 5.4 per cent, but recouped most of the losses to end just 0.2 per cent lower| May 06, 2020, Wednesday -
Petrol, diesel excise hike can add Rs 1.4 trn to govt's coffers: Barclays
Apart from the increase in central government taxes, several states and union territories, including Delhi, Haryana, Assam, ...| May 06, 2020, Wednesday -
With record excise duty hike on fuel, Modi govt may gain Rs 1.6 trn in FY21
Together with Rs 39,000 crore in annual revenues gained from the March 14 excise duty hike of Rs 3 per litre each on petrol and ...| May 06, 2020, Wednesday -
OMCs tank as govt raises excise duty on petrol, diesel; HPCL, BPCL dip 10%
The price hike will be absorbed by oil marketing companies against the fall in crude prices.| May 06, 2020, Wednesday -
Centre raises excise duty on petrol by Rs 10 per litre, diesel by Rs 13
No change in retail prices as oil marketing firms to absorb increase| May 06, 2020, Wednesday