Excise duty is a form of indirect tax that is levied by the Central Government of India for the production, sale, or license of certain goods. It is a tax levied on goods produced within the country, as opposed to customs duty that is levied on goods coming from outside the country. Excise duty is a tax imposed on goods for their production, licensing, and sale. It is a tax on the production or sale of a good. The Central Board of Excise and Customs is responsible for the collection of excise duty. There are three different types of central excise duties which exist in India, which are as follows:
- Basic Excise Duty (Section 3 of Central Excise Duty Act, 1944)
- Additional Excise Duty (Section 3 of Excise Act, 1957)
- Special Excise Duty (Section 37 of Finance Act, 1978)
The rate of duty on various categories of goods varies depending on the type of goods. Excise duty is an indirect form of taxation and is collected from a customer by a retailer or an intermediary. It is paid when goods are transferred from the production unit to a warehouse. If excise duty is paid online through net banking, the payment is due on the sixth day of the next month. If the payment is paid in March, it must be made by March 31.