n NISM Certifications
XV NISM Series XV
Medium

In India, excise duty is levied on which of the following?

Practice question from NISM XV Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Alcoholic beverages

  2. B

    Plastic products

  3. C

    Detergents

  4. All of the above

    Correct answer

Why this is the answer

Excise duty is a tax levied on the production of certain goods within a country. While the introduction of the Goods and Services Tax (GST) has replaced excise duties on many products, certain goods such as alcoholic beverages, petrol, and diesel remain outside GST and are subject to excise duty. Therefore, the correct answer is all of the above. Plastic products and detergents, when not covered by GST exemptions, may also be subjected to excise duty, although these are largely under GST now. The key point is that excise is applied at the point of manufacturing.

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