What is custom and excise duty

Custom duty and excise duty are indirect taxes levied by the Indian government on goods, but they differ based on where the goods are produced:

• Custom Duty: This tax is imposed on goods when they cross international borders, primarily on imports into India and occasionally on exports. It helps regulate foreign trade and protects domestic industries.
• Excise Duty: This tax is levied on specific goods manufactured or produced within India, such as petroleum products, tobacco, and alcohol. Since the introduction of GST, most other manufactured items are no longer subject to excise duty.