Step 5 C:- EXCISE Registration

What is Excise Duty?

Excise duty is a tax which is charged on Manufacturer / Production of goods as well as from Importers of some specified Goods. Excise Duty is generally recognized as:-

  • Central Excise: – This is the duty which is collected by central Govt.
  • State Excise:- This is collected by Specific state in which the business is located
  • Additional Duties on Import:-This is the duty which is collected on the import of those items on which Excise is collected if that product was manufactured in India instead of importing it. This duty is in kind of compensatory duty which is collected to compensate for the revenue loss caused by the import of those goods.

Who needs to apply for Excise?

Every Business which is planning to start a manufacturing unit or planning to import any item from abroad, need to consult about the excise duty implication on that particulars product. It is always advisable to be certain about the tax implication and its compliance.

For Example, If you want to set a manufacturing plant to confirm the duty liability under Central as well as State Excise well in advance before starting the activity.

Factor Excise tax before you start a manufacturing unit.

As mentioned above it is utmost important to factor the excise tax impact due to:-

  • A decision on the cost of the final product
  • A decision on the selling price of the product
  • A decision on Manufacturing or Import

Exemption for Small Scale Industry

Considering the importance and for its promotion, small scale industries are exempted from paying excise duty. Any Manufacturing unit which has a turnover of less than 1.5 Cr is exempt from payment of Excise duty.

When Excise is chargeable?

Excise is an event based taxes, and taxes are charged once goods are an exit from the gate of the manufacturing plant. The invoice is made on the gate pass basis

What is the compliance under Excise?

All the compliance can be divided into two steps:-

What is the rate of Central Excise duty?

The rate of Excise duty depends on Product to product which is decided as per Central Excise Tariff which is notified and updated each year in Finance Act, the same can be found in.

Service provided by us

  • Central & State Excise Registrations
  • Return filling and compliance of Excise
  • Consulting on a various issue related to Central & State Excise