Published: 23 February 2026PIBEconomy
Central Excise Day 2026 Observed on February 24; Marks 82 Years of Indirect Tax Administration
Central Excise Day is observed every year on February 24 across India to commemorate the enactment of the Central Excise and Salt Act, 1944, which came into force on this date in 1944. In 2026, the day marks the 82nd anniversary of the Central Excise and Salt Act. The day is observed by the Central Board of Indirect Taxes and Customs (CBIC) under the Ministry of Finance to honour the contributions of excise officials and raise awareness about indirect tax compliance.
With the implementation of the Goods and Services Tax (GST) in July 2017, Central Excise duty was largely subsumed, except on petroleum products, tobacco, and alcohol for human consumption. Central Excise Day now serves as an occasion to recognise the evolution of India's indirect tax architecture — from production-based excise to the modern destination-based GST system. Notably, GST collections in India crossed ₹2 lakh crore for the first time in the financial year 2025-26, reflecting buoyant consumption and improved compliance.
For Rajasthan, which has a significant manufacturing base in ceramics (Morbi belt spillover, Alwar), cement, textiles, and gems, excise and GST revenue form a crucial part of state finances. The state's GST collections have grown consistently, contributing to capital expenditure for infrastructure.
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Linked questionMedium
Central Excise Day is observed in India every year on which date?
Explanation · Correct answer ACentral Excise Day is observed on February 24. It commemorates the enactment of the Central Excise and Salt Act, 1944, which was enacted on 24 February 1944 and later became the Central Excise Act, 1944.
Frequently asked questions
When is Central Excise Day observed and what does it commemorate?
Central Excise Day is observed on February 24 every year to mark the enactment of the Central Excise and Salt Act, 1944. In 2026, it commemorated 82 years of India's excise administration.
When did GST subsume central excise duty, and under which constitutional provision?
Central excise duty was subsumed into the Goods and Services Tax (GST) in July 2017. GST is governed by Article 246A of the Indian Constitution.
Which body administers indirect taxes including GST in India?
The Central Board of Indirect Taxes and Customs (CBIC) administers indirect taxes, including GST and customs duties, in India.
What milestone did GST collections achieve in FY 2025-26?
For the first time, GST collections crossed ₹2 lakh crore per month in FY 2025-26, reflecting significant growth in India's indirect tax base.
How did central excise differ from GST in its tax structure?
Central excise was a production-based tax levied on manufactured goods at the factory level, whereas GST is a destination-based consumption tax applied at the point of final consumption.
