In some industries, businesses are only allowed to set off a portion of their input excise duty against output duty. In this case, the remainder of the duty is added to the material value.

If this applies to your operations, you:

• Specify this in the CIN Implementation Guide (IMG), by choosing Global Settings ® Excise Registration IDs.

• Configure separate tax codes that split the excise and post some as tax and add the rest to the material price

The portion of the excise duty that is added to the material value is displayed in the excise invoice, along with the CENVAT credit. This amount is added to the inventory value when you post the goods receipt.