CBIC (Syllabus: GS Paper 3 – Economy)

Context: The Central Board of Indirect Taxes & Customs has invited suggestions on the draft ‘Central Excise Bill, 2024’, which aims to enact a comprehensive modern central excise law with an emphasis on promoting ease of doing business and repealing old and redundant provisions.

Central Board of Indirect Taxes & Customs (CBIC)

• About: CBIC, formerly known as the Central Board of Excise and Customs, operates within the Department of Revenue under the Ministry of Finance, Government of India.
• Establishment: Under the Central Board of Revenue Act, 1963
• Structure: The CBIC is led by a Chairman appointed by the Indian Government.
• Divisional Structure: The organization is divided into various divisions and zones, each managed by a Chief Commissioner or Director General.
• GST Intelligence Wing: CBIC also houses a GST intelligence wing tasked with detecting and preventing tax evasion related to Goods and Services Tax.

Functions of CBIC

• Administration of Indirect Taxes: CBIC is responsible for the administration of all indirect tax-related matters in India.
• Policy Formulation: It formulates policies regarding the levy and collection of Customs, Central Excise duties, Central Goods & Services Tax (GST), Integrated Goods & Services Tax (IGST), and oversees prevention of smuggling.
• Administrative Authority: CBIC acts as the administrative authority for its subordinate organizations, such as Custom Houses, Central Excise and Central GST Commissionerates, and the Central Revenues Control Laboratory.
• Tax Collection: It ensures prompt deposit of taxes collected by collection agencies into the public exchequer, including taxes on foreign and inland travel.
• Customs Administration: At various locations such as International Airports, Seaports, Custom Houses, International Air Cargo Stations, International Inland Container Depots (ICDs), Land Customs Stations, Special Economic Zones (SEZs), etc.