ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country). It is a tax on the production or sale of a good. This tax is now known as the Central Value Added Tax (CENVAT).

Detailed explanation-2: -In general, an excise tax is a tax is imposed on the sale of specific goods or services, or on certain uses.

Detailed explanation-3: -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. Excise duty charges are also collected by state governments for alcohol and narcotics. Note: Excise duty has been replaced by the Goods and Services Tax(GST) w.e.f. 1 July 2017.

Detailed explanation-4: -Differences between Excise Duty & Sales Tax Excise duty is on the production of goods whereas sales tax is levied on sale of goods. Excise duty is paid by the manufacturer while the burden of sales tax is borne by the end consumer.

Detailed explanation-5: -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.