What is Classification in Excise?

 

Classification in Excise

Means determining the headings and subheadings of CETA under which goods are covered

 

Why is Classification necessary?

There are thousands of goods in CETA. Classification helps in identifying rate of duty on different goods.

 

Scheme of Classification

It is based on HSN (Harmonized scheme of Nomencalture)

HSN is an internationally accepted scheme of nomenclature formulated as per directions of General Agreement of Trade and Tariff (GATT)

 

Second Schedule of CETA

It contains rate of Special Excise Duty

From 1.3.2006 onwards, all items are exempted from this duty.

  1. Indirect Tax
  2. Excise
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CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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