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ABOUT Excise Registration

Duty or tax paid within India on sale, or production for sale of specified goods is called an excise duty. Excises are inland taxes, whereas customs duties are border taxes. Excise duty is an indirect tax which means that the producer or seller pays tax to the government and eventually shifts the burden on buyer by raising the price of the product. Excise is typically imposed in addition to another indirect tax such as a sales tax or VAT.

The liability of central excise duty arises as soon as the goods are manufactured. Incidence of excise duty arises on production or manufacture of goods and not on the sale of goods from place of manufacture. Normally, duty is payable on 'removal' of goods. Every person who produces, manufactures or stores any 'excisable goods', shall pay the duty on such goods. No taxable excisable goods shall be 'removed' without payment of duty. The word 'removal' includes sales, transfer, captive consumption and free distribution.


  • Every manufacturer of dutiable goods.
  • First and second stage dealers desiring to issue Cenvatable invoices.
  • Persons holding warehouses for storing non-duty paid goods.

Required Documents

The requirements of documents vary from user to user based on their jurisdiction. But the basic documents required are as follows:

  • PAN Card of establishment.
  • In case of Partnership, Partnership Deed and in case of company, Memorandum of association/Articles of association
  • Address proof such as telephone bill and electricity bill for premises to be registered.
  • Proof of address of premises for which single or centralized registration taken:
  • Rent agreement in name of proprietary & partnership firm or document issued by any central or state government along with a No Objection Certificate from the Owner(in case of Rental Premises)
  • Property tax paid challan and Sale deed(in case of owned premises) / copy of index.
  • PAN Card and Residence addresses of proprietor / all partners/ all directors.
  • PAN card copy of authorized signatory
  • Ground plan of factory (which should also provide description of boundaries of premises to be registered)
  • Authority Letter
  • Address proofs of the factory premises like:
  • Registration Certificate under any other laws, if any.
  • List and value of Plant & Machineries.
  • Expected Date Of Commencement Of Production
  • No. Of Bank Accounts Operating In The Name Of The Firm/ Company  (Details Of All Bank Accounts)



There are 3 types of duties:

  • Basic –On all excisable goods other than salt produced or manufactured in India at the rates set forth in the schedule to the Central Excise tariff Act, 1985.
  • Additional - Goods as listed in the scheduleof the 'Additional Duties of Excise Act' of 1957 permits the charge and collection of excise duty. This tax is shared between the central and state governments.
  • Special -  On all excisable goods that come under taxation, in line with the Basic Excise Duty under the Central Excises and Salt Act of 1944. Each year the Finance Act spells out the applicability of Special Excise Duty and eventually collects during the relevant financial year.
The goods specified in the first and second schedule of the Central Excise Tariff Act, 1985 are excisable goods and includes salt.
  • Sales Tax is a tax on the act of sale while Excise duty is a tax on the act of manufacture or production of goods.
  • Excise typically applies to a narrower range of products
  • Excise is comparatively heavier, accounting for a higher fraction of the retail price of the specified products
  • Excise is charged usually on per unit basis unlike VAT/Sales tax which is proportional to the price of the good.

The term "manufacture" includes any process,

  • Incidental or ancillary to the completion of a manufactured product and
  • As specified in relation to any goods in the Section or Chapter Notes of the First Schedule to the Central Excise Tariff Act 1985
  • In relation to the goods specified in the Third Schedule, involves packing or repacking of such goods or labelling or re-labelling of containers including the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer.
The liability to pay excise duty is always on the manufacturer or producer of goods.
Yes, it is mandatory to pay duty on all goods manufactured, unless exempted. Exemption from payment of duty is available based on conditions such as value of turnover (clearances) in a financial year, type of process employed, exports etc.
Under the different sections of the central excise act, the fines for evading tax can range from 25 % to 50 % of the amount of duty evaded which comes out usually to be a significant amount.
Excise duty on alcohol, alcoholic preparations and narcotic substances is collected by the State Government whereas duty on rest of goods is collected by Central Government.

Yes. The following categories of persons are exempt from Central Excise registration.

  • Manufacturers of goods which are chargeable to nil rate of duty or are fully exempt;
  • SSI manufacturers whose annual turnover in previous financial year is below Rs. 400 lakhs.
  • Job-workers of ready-made garments if the principal manufacturer undertakes to discharge the duty liability;
  • Approved/licensed units in Export Processing Zones, Special Economic Zones and 100% Export Oriented Units.
The rate of duty on each item is specified in the Central Excise Tariff Act, 1985. In some cases, the statutory rates of duty have been lowered or reduced to Nil by the Central Government. This being a huge list cannot be mentioned here, henceforth drop your query at Finmart’s website and let us assist you with the information.
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