Who needs to file excise duty returns?

Only manufacturers of specified goods (like petroleum and tobacco) must file excise returns post-GST implementation.

How is customs duty calculated?

Customs duty is calculated based on Assessable Value + Basic Customs Duty (BCD) + IGST + Compensation Cess (if applicable).

Can I claim a refund for excess excise/customs duty paid?

Yes, refunds can be claimed by submitting Form RFD-01 within the prescribed time limit.

What are the penalties for late filing?

Penalties can range from ₹100 per day for excise to 10%-100% of the tax short-paid for customs violations.

Is customs duty applicable to all imports?

Yes, unless exempted under specific trade agreements or government notifications.

Excise and Customs

Excise and Customs duties are key components of indirect taxation in India, governed by the Central Excise Act, 1944 and the Customs Act, 1962. Businesses dealing with the manufacture, sale, or import/export of goods must comply with mandatory tax regulations, file periodic returns, and adhere to legal provisions to avoid penalties.

What are Excise and Custom
Duties?

Excise Duty: A tax levied on the manufacture of goods in India. With the introduction of GST, excise duty is primarily applicable to petroleum products, liquor, and tobacco.
Customs Duty: A tax imposed on goods imported into or exported from India.

Expert excise and customs consultancy services in India for import-export businesses – GST compliance, DGFT licensing, customs clearance, and duty drawback solutions.

Mandatory Compliances for Excise and Customs

Excise Duty Compliances

Excise Registration (if applicable)
Monthly Excise Returns (ER-1, ER-2, ER-3, etc.)
Payment of Excise Duty before the due date
Maintaining Excise Records & Registers
Timely Submission of Forms (e.g., ARE-1 for export clearance)

Customs Duty Compliances

Import Export Code (IEC) Registration
Bill of Entry Filing for imports
Shipping Bill Filing for exports
Duty Payment within the stipulated time
Adhering to Import Licensing Requirements
GST on Imports (IGST Payment)
Compliance with Free Trade Agreements (FTA), if applicable

Late Fees and Penalties

Failure to comply with excise and customs regulations attracts penalties:

Excise Late Fees: ₹100 per day of delay up to ₹20,000.
Customs Penalties: Varies based on the nature of non-compliance, ranging from 10% of duty short-paid to imprisonment for fraudulent activities.

Most Popular Products and Services Under Excise & Custom Taxation

Excise Duty Applies to: Petroleum products, alcohol, tobacco, pan masala
Customs Duty Applies to: Electronics, gold, silver, vehicles, machinery, textiles, chemicals

Step-by-step process for excise and customs compliance in India – expert guidance on registration, documentation, duty calculation, GST integration, and regulatory filing for import-export businesses.

Process for Filing Excise and Custom Returns

Excise and customs compliance workflow for Indian businesses – complete process covering registration, customs documentation, excise duty filing, GST compliance, and post-clearance audit support.

Step 1: Register for Excise/Customs Duty

Obtain IEC for import/export
Register under excise law (if applicable)

Step 2: Document Preparation

Invoice details, shipping bills, customs clearance certificates
Excise invoices, duty payment receipts

Step 3: Return Filing & Duty Payment

File online through ICEGATE (for Customs) and CBIC Portal (for Excise)
Pay duty online via NEFT/RTGS

Step 4: Acknowledgment & Compliance Audit

Ensure accurate filings to avoid penalties
Maintain records for future audits

Timeline for Filing Returns

Return Type	Frequency	Due Date
Excise ER-1	Monthly	10th of next month
Excise ER-2	Monthly	10th of next month
Bill of Entry	Per Shipment	Before goods clearance
Shipping Bill	Per Shipment	Before export clearance

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