Central Excise Duty

Excise duty is applicable to the manufacture of goods within India and is payable by the manufacturer. The Excise Tariff is primarily based on the eight digit HSN classification adopted so as to achieve conformity with the Customs Tariff. Excise duty is generally levied on an ad valorem basis, either expressed as a percentage of the transaction value or maximum retail price (for certain specified goods). Goods manufactured in India can be exported without payment of excise duty, subject to specified conditions. Similarly, input used in the manufacture of these goods can be procured without payment of excise duty. The peak rate of the duty stands at 10% and the basic rate has been increased from 4 to 5% according to the current edition of the budget.