Context:
Central Board of Indirect Taxes & Customs (CBIC), has prepared a draft ‘Central Excise Bill, 2024.
Central Excise Bill, 2024:
- The Bill shall replace the Central Excise Act, of 1944.
- It aims to enact a comprehensive modern central excise law repealing old and redundant provisions and promote ease of doing business.
Excise duty:
- An indirect tax collected from a customer by a retailer or an intermediary.
- Paid when goods are transferred from the manufacturing unit to a warehouse.
- Governed under –
- Central Excise Act, 1944 – Governs the levy and collection of excise duties on goods manufactured/ produced in the country.
- Central Excise Tariff Act, 1985 – Classifies the goods on which central excise duty is levied and the rates of duty payable.
- Impact of Goods and Services Tax (GST) – Subsumed many types of excise duty.
- Current status – Presently, excise duty applies only on petroleum and liquor.
- Excise duty was replaced by central GST.
- State Excise duty – Excise duty on alcohol, alcoholic preparations, and narcotic substances collected by the State Government
Source: Economic Times
Previous Year Question
Consider the following items:
1. Cereal grains hulled
2. Chicken eggs cooked
3. Fish processed and canned
4. Newspapers containing advertising material
Which of the above items is/are exempted under GST (Good and Services Tax)?
[UPSC Civil Services Exam – 2018 Prelims]
(a) 1 only
(b) 2 and 3 only
(c) 1, 2 and 4 only
(d) 1, 2, 3 and 4
Answer: (c)
Explanation:
Fish, crustaceans & other aquatic invertebrates in processed, cured or frozen state are taxable at 5% rate under GST.
