Q. With reference to Excise Duty in India, consider the following statements:
1.Excise duty is an indirect tax imposed on goods manufactured within the country.
2.After the implementation of GST, excise duty is still levied on certain items like petroleum and liquor.
3.Excise duty is paid directly by the consumers to the government at the time of purchase.
Which of the statements given above is/are correct?
Answer: A
Notes:
Explanation:
- Excise duty is an indirect tax levied on the manufacture of goods within India.
- After GST, excise duty is still applicable on petroleum and liquor, which are excluded from GST.
- Excise duty is paid by the manufacturer to the government, not directly by consumers. However, the burden may be passed on to consumers in the final price.
Source: Indian Economy (N.C.E.R.T)
