The Central Board of Indirect Taxes & Customs (CBIC), has prepared a draft ‘Central Excise Bill, 2024.’ Once enacted, the Bill shall replace the Central Excise Act, of 1944.
- The Bill aims to enact a comprehensive modern central excise law repealing old and redundant provisions and promote ease of doing business.
About excise duty
- The excise duty is an indirect tax collected from a customer by a retailer or an intermediary.
- It is paid when goods are transferred from the manufacturing unit to a warehouse.
- The excise duty is governed by two sets of acts:
- Central Excise Act, 1944: It governs the levy and collection of excise duties on goods manufactured/produced in the country.
- Central Excise Tariff Act, 1985: It classifies the goods on which central excise duty is levied and the rates of duty payable.
- Goods and Services Tax (GST), subsumed many types of excise duty. Today, excise duty applies only on petroleum and liquor.
- Excise duty was replaced by central GST.
- Excise duty on alcohol, alcoholic preparations, and narcotic substances is collected by the State Government and is called "State Excise" duty.