CBIC

The Central Board of Indirect Taxes and Customs (CBIC) is a

central government agency in India responsible for administering
and overseeing indirect taxes, including customs duties, central
excise duties, service tax (prior to the implementation of Goods
and Services Tax or GST), and now GST. It is the apex body for
policy formulation and implementation in the field of indirect
taxation in India.

CBIC was formed following the merger of the Central Board of

Excise and Customs (CBEC) and the Central Board of Direct
Taxes (CBDT). However, the functions related to direct taxes
remain with the CBDT, while CBIC focuses on indirect taxes.

The main functions of CBIC include policy formulation,

enforcement of indirect tax laws, taxpayer assistance, revenue
collection, international trade facilitation, and combating tax
evasion and smuggling activities. CBIC works through its various
directorates, field formations, and regional offices spread across
the country to ensure efficient administration and enforcement of
indirect tax laws.

ROLE OF CBIC

The Central Board of Excise and Customs (CBEC) in India,

which has since been reorganized into the Central Board of
Indirect Taxes and Customs (CBIC) as of 2018, plays a crucial
role in the administration of indirect taxes in the country. Here are
some of its key functions:

1. Policy Formulation: CBEC/CBIC is responsible for

formulating policies related to customs, central excise, service
tax, and other related matters.

2. Tax Administration: It administers various indirect taxes such

as customs duty, central excise duty, service tax (now merged into
Goods and Services Tax or GST), and other duties levied by the
government.
3. Tax Collection and Enforcement: CBEC/CBIC is involved in
the collection of customs duties, central excise duties, and other
indirect taxes. It ensures compliance through enforcement actions
such as audits, inspections, and investigations to prevent evasion
and ensure revenue collection.

4. Trade Facilitation: While ensuring compliance, CBEC/CBIC

also focuses on facilitating legitimate trade by simplifying
procedures, reducing paperwork, and implementing trade
facilitation measures to enhance the ease of doing business.

5. Tariff Classification and Valuation: It is responsible for the

classification of goods for the purpose of customs duties, as well
as determining the valuation of imported and exported goods.

6. International Trade Relations: CBEC/CBIC plays a role in

international trade relations by representing India in customs and
excise-related matters in international forums and negotiations.
7. Policy Interpretation and Guidance: It provides guidance to
taxpayers, customs officials, and other stakeholders regarding the
interpretation and application of customs and excise laws and
regulations.

8. Technology Integration: CBEC/CBIC integrates technology

into its operations for efficient tax administration, including
electronic filing of returns, online payment of taxes, and
electronic tracking of goods in transit.

Overall, the CBEC/CBIC functions as the apex body for the

administration of indirect taxes in India, with a focus on revenue
collection, trade facilitation, policy formulation, and enforcement
to achieve economic objectives and ensure compliance with tax
laws.

STRUCTURE OF CBIC
1. Chairman: The Chairman is the head of the CBIC and is
responsible for overseeing its functioning and operations. The
Chairman is typically an officer of the rank of Revenue Secretary
to the Government of India.

2. Members: CBIC consists of several members who are

responsible for various aspects of indirect tax administration.
These members include:

- Member (Customs)

- Member (Central Excise and Service Tax)

- Member (Taxpayer Services)

- Member (Investigation)

- Member (Legal and Compliance)

- Member (GST Policy)

- Member (Budget, CBIC, and IT)

- Member (Administration)

- Member (Personnel and Vigilance)

- Member (Audit)
3. Directorates and Offices: CBIC has several directorates and
field formations spread across the country. These include
directorates responsible for customs, central excise, service tax,
anti-smuggling, intelligence, and others. Each directorate is
headed by a Director General or a Chief Commissioner.

4. Zonal Chief Commissioners: The country is divided into zones,

each headed by a Chief Commissioner of Customs and Central
Excise. These zones are further subdivided into smaller units like
commissionerates, divisions, and ranges.

5. Commissioners and Assistant Commissioners: Each zone and

its subdivisions have commissioners and assistant commissioners
who oversee tax assessment, collection, enforcement, and
taxpayer services.

6. GST Council Representation: CBIC also has representation in

the Goods and Services Tax (GST) Council, which is responsible
for making recommendations on issues related to GST, including
rates, exemptions, and amendments to the law.

Overall, the structure of CBIC is designed to ensure effective

administration, enforcement, and collection of indirect taxes in
India, including customs duties, central excise duties, service tax
(before the implementation of GST), and now Goods and Services
Tax (GST).