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Title : DETAILS OF EXCISE DUTY
Date : Dec 15, 2021
Topic à Indian Economy
- What is Excise Duty, and how does it work:
- Excise duty is a type of tax levied on goods for their manufacture, distribution, and sale.
- It is the polar opposite of Customs duty in that it applies to things manufactured in the country, whereas Customs is imposed on goods arriving from outside the country.
- Previously, excise tax was levied at the federal level as Central Excise Duty, Additional Excise Duty, and so forth.
- Excise duty was imposed on manufactured items at the time of removal, whereas GST was imposed on the supply of goods and services.
- Excise duty's jurisdiction:
- The GST, which went into effect in July 2017, absorbed a variety of excise taxes.
- Excise duty is currently exclusively applied on gasoline and alcoholic beverages.
- As a result of a constitutionally mandated exclusion, alcohol is not subject to GST.
- States continue to tax alcohol in the same way they did prior to the implementation of the GST.
- Excise duty was replaced by central GST with the introduction of GST because excise was levied by the central government. The CGST money is directed to the federal government.
- In India, there are several different types of excise duties.
- There were three types of excise charges in India before to the implementation of GST.
- The Central Value Added Tax is another name for basic excise charge (CENVAT). This excise duty was imposed on items that fell under the first schedule of the Central Excise Tariff Act of 1985.
- The Central Excise Act of 1944, Section 3 (1) (a), imposed this charge. Except for salt, this charge was imposed on all items.
- The Additional Excise under Additional Duties of Excise (Commodities of Special Importance) Act, 1957, imposed an additional excise levy on high-value goods.
- This duty was imposed on a certain type of product.
- Special Excise Duty:
- Special items listed under the Second Schedule of the Central Excise Tariff Act of 1985 were subject to this sort of excise charge.
- On car fuels, the central excise duty is currently divided into three categories: Basic Excise Duty, Special Additional Excise Duty, and Additional Excise Duty (Road and Infrastructure Cess).
- Source à The Hindu à 14/12/21 à Page Number 2
Tags : Value Added Tax , CENVAT