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The largest revenue in India is obtained from

Q. The largest revenue in India is obtained from
  1. Sales tax
  2. Direct tax
  3. Excise duties
  4. None of these
Answer: Excise duties


The Largest Revenue in India is obtained from Excise Tax. In the case of State Government, the largest revenue is obtained from the Sales Taxes.

An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country). It is a tax on the production or sale of a good. This tax is now known as the Central Value Added Tax (CENVAT).

In India, almost all products are subject to excise duty,[citation needed] provided the following four conditions are fulfilled:
  • There should be a manufacture
  • The manufacture was in India (excluding special economic zone)
  • The manufacture should result in goods
  • The goods thus manufactured must be excisable (means the goods must be specified in central excise tariff act,1985)
In India, the Government has produced an automatic centralised system for paying excise. With this, manufacturers can easily pay their excise online on every 5th of the following month through GAR-7.

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