The correct answer is Excise duty. • Indirect tax is the tax levied on the consumption of goods and services. It is not directly levied on the income of a person. • It is levied upon goods and services before they reach the customer who ultimately pays the indirect tax as a part of the market price of the good or service purchased Important Notes: • Excise duty is a form of tax imposed on goods for their production, licensing and sale. • An indirect tax paid to the Government of India by producers of goods, excise duty is the opposite of Customs duty in that it applies to goods manufactured domestically in the country, while Customs is levied on those coming from outside of the country. • After GST was introduced, excise duty was replaced by central GST because excise was levied by the central government. The revenue generated from CGST goes to the central government. • Today, excise duty applies only to petroleum and liquor. Related Concepts: • Direct Tax: • A direct tax is a tax that a person or organization pays directly to the entity that imposed it that is government. • The following are types of direct taxes: • Corporation tax • It is a direct tax imposed on the net income or profit that enterprises make from their businesses. • Capital gain tax: • Capital can be defined as any profit that is received through the sale of a capital asset. The profit that is received falls under the income category. Therefore, a tax needs to be paid on the income that is received. The tax that is paid is called capital gains tax and it can either be long-term or short term • Income tax • It is a direct tax that a government levies on the income of its citizens. The Income Tax Act, of 1961, mandates that the central government collect this tax. Hence, The correct answer is Excise duty.