Central Board of Indirect Taxes & Customs: Roles and Network

“The new entity – Central Board of Indirect Taxes & Customs (CBIC) shall supervise the work for its field formations and overlook the functioning of Directorates, aiding the Government in policy making in relation to Goods & Services Tax, continuing Central Excise Levy and Custom Operations” – Arun Jaitley, Union Finance Minister.

Central Board of Indirect Taxes & Customs: Roles and Network


Introduction: 

As the Central Government is leaving no stone unturned to ensure the rolling out and implementation of the Goods and Services Tax (GST), w.e.f. July 1, 2017, Union Finance Ministry led by the Union Finance Minister, Arun Jaitley, on March 25, 2017, approved the rechristening and restructuring of the Central Board of Excise & Customs (CBEC) as the Central Board of Indirect Taxes & Customs (CBIC). However, legislative approval i.e. the Parliamentary approval is also required to this effect before the actual name change. For the legislative approval, the Central Board of Revenue Act, 1963, is expected to be amended suitably. As per approval accorded by Mr. Jaitley, the new Board for Indirect Taxes is to become operational from June 1, 2017.

Why the Name is to be changed? 

The prime reason for the name change is due to the overhauling of the tax regime in India i.e. to implement and enforce the provisions of the proposed Goods & Services Tax (GST) Act to be effective from July 1, 2017.

Other Name Changes: 

The existing Training Establishment of CBEC would also be renamed as “National Academy of Customs, Indirect Taxes and Narcotics”. 
The training institute will have an all-India presence, to enable capacity building of the employees of the indirect tax administration of the Centre as well as of the State Governments and the members of Trade and Industry. 
This will also make certain that the taxpayers are availing the services required by them for transition to GST tax administration structure. 
The renamed Directorate General of Goods & Service Tax Intelligence is also being strengthened and expanded to become an important wing of the Government in its fight against Tax Evasion and Black Money.

New Roles and Functions of CBIC: 

The proposed CBIC shall supervise the work of all its field formations and Directorates to “Assist the Government in policy making in relation to GST”. 
CBIC will continue to perform the earlier Central Excise levy & Customs functions.

A network of Proposed CBIC: 

CBIC will have:
  • 21 Zones 
  • 101 GST Taxpayer Services Commissionerates 
  • 15 Sub-Commissionerates 
  • 768 Divisions 
  • 3,969 Ranges 
  • 49 Audit Commissionerates 
  • 50 Appeals Commissionerates 

Smooth transition for the taxpayers towards the GST environment; 

  • Confirming smooth implementation of GST by rendering of taxpayer services to all the taxpayers through an indirect tax administration structure, having a pan-India presence. 
  • Besides, the government is also expanding and strengthening the Directorate General Tax Payer Services for the smooth transition for the taxpayers to the GST regime. 
  • Main Effects of GST: GST seeks to replace India’s complicated tax regime comprising 17 different charges with a single levy. 
  • GST will subsume all Central and State indirect taxes and levies, including excise duty, additional excise duties, service tax, additional customs duty, surcharges and cesses, VAT, Sales tax, Entertainment tax, Central Sales Tax (levied by the Centre and collected by States), Octroi, entry tax, purchase tax, luxury tax, and taxes on lottery, betting and gambling, etc. 
  • GST is expected to curb tax evasion, make commodities cheaper on the one hand, and on the other hand add up to 2 percent to India’s GDP growth.

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