excise duty is a form of indirect tax imposed by the government on the manufacture or production of goods within the country. Excise duty is levied at the time of manufacturing or production, and it is typically included in the price of the goods.

1. Objective:
• The primary purpose of excise duty is to generate revenue for the government. It is considered an indirect tax because the burden of the tax is ultimately borne by the end consumer, even though it is levied on the manufacturer or producer.
2. Applicability:
• Excise duty is usually applicable to goods produced or manufactured within the country.
• It is not a consumer tax but is applied at the point of manufacture or production.
3. Goods Covered:
• Excise duty is typically levied on specific goods listed in the excise tariff. These goods may include items such as alcohol, tobacco, petroleum products, and other items considered excisable.
4. Calculation and Collection:
• The calculation of excise duty is often based on the quantity or volume of goods produced or manufactured. The duty is collected from the manufacturer or producer.
5. Excise Tariff:
• The government maintains an excise tariff that specifies the rates of excise duty applicable to different goods.
• The tariff may also include exemptions, concessions, and other provisions.
6. Registration:
• Manufacturers or producers subject to excise duty are typically required to register with the tax authorities.
• Registration facilitates compliance, including filing periodic returns and making excise duty payments.
7. Changes and Reforms:
• Excise duty rates and regulations can change based on government policies, economic conditions, and fiscal reforms.
8. Transition to Goods and Services Tax (GST):
• In many countries, including India, there has been a transition to a unified Goods and Services Tax (GST) system, which subsumes various indirect taxes, including excise duty.
• Under GST, the taxation of goods and services is integrated, aiming to simplify the tax structure.