Trusted by 1L+ Indians

Want to Achieve any of the below Goals upto 80% faster?

Car Side View

Dream Home

Car Side View

Dream Wedding

Car Side View

Dream Car

Motorcycle Side View

Retirement

auto rikshaw

1st Crore

Car Side View

Dream Home

Car Side View

Dream Wedding

Car Side View

Dream Car

Motorcycle Side View

Retirement

auto rikshaw

1st Crore

Trusted by 1L+ Indians

Want to Achieve any of the below Goals upto 80% faster?

Car Side View

Dream Home

Car Side View

Dream Wedding

Car Side View

Dream Car

Motorcycle Side View

Retirement

auto rikshaw

1st Crore

Car Side View

Dream Home

Car Side View

Dream Wedding

Car Side View

Dream Car

Motorcycle Side View

Retirement

auto rikshaw

1st Crore

Trusted by 3 Crore+ Indians

Want to Achieve any of the below
Goals upto 80% faster?

Car Side View

Dream Home

Car Side View

Dream Wedding

Car Side View

Dream Car

Motorcycle Side View

Retirement

auto rikshaw

1st Crore

Trusted by 3 Crore+ Indians

Want to Achieve any of the below
Goals upto 80% faster?

Car Side View

Dream Home

Car Side View

Dream Wedding

Car Side View

Dream Car

Motorcycle Side View

Retirement

auto rikshaw

1st Crore

Trusted by 3 Crore+ Indians

Want to Achieve any of the below Goals upto 80% faster?

Car Side View

Dream Home

Car Side View

Dream Wedding

Car Side View

Dream Car

Motorcycle Side View

Retirement

auto rikshaw

1st Crore

Trusted by 3 Crore+ Indians

Want to Achieve any of the below Goals upto 80% faster?

Car Side View

Dream Home

Car Side View

Dream Wedding

Car Side View

Dream Car

Motorcycle Side View

Retirement

auto rikshaw

1st Crore

Central Board of Indirect Taxes & Customs (CBIC)

Central Board of Indirect Taxes & Customs (CBIC)

Central Board of Indirect Taxes & Customs (CBIC): Overview

The Central Board of Indirect Taxes & Customs (CBIC) is a pivotal institution within the Indian tax administration system. It is responsible for the regulation and management of various indirect taxes, including Goods and Services Tax (GST), central excise duty, service tax, and customs duties, among others. This article provides a comprehensive overview of the CBIC, detailing its history, functions, organizational structure, and key responsibilities, and serves as a useful resource for those preparing for the UPSC examination.

What is the Central Board of Indirect Taxes & Customs (CBIC)?

The CBIC operates under the Department of Revenue, which is a part of the Finance Ministry of the Government of India. This board is the principal authority tasked with overseeing the implementation and administration of indirect taxes in the country.

Initially known as the Central Board of Excise and Customs (CBEC), the organization was rebranded as the Central Board of Indirect Taxes and Customs in 2018. The name change was part of a broader effort to reflect the expanded scope of its responsibilities and to streamline its operations under the evolving framework of indirect taxation in India.

The CBIC’s mandate includes policy formulation related to the levy and collection of central excise duties, customs duties, the Goods and Services Tax (GST), and the Integrated Goods and Services Tax (IGST). It also plays a critical role in preventing smuggling and drug trafficking to the extent specified by law.

Historical Background of CBIC

The origins of the CBIC can be traced back to the establishment of the Central Board of Revenue in 1924 under the Central Board of Revenue Act. This board served as the apex body overseeing the Income Tax Department. In 1964, a significant restructuring occurred, leading to the formation of two separate entities: the Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs. The latter was renamed the Central Board of Indirect Taxes and Customs in 2018, reflecting its expanded role in the indirect taxation system.

Organizational Structure

CBIC Members and Leadership

The CBIC is headed by the Chairperson, who is the senior-most officer of the Indian Revenue Service (IRS) specializing in Customs and Indirect Taxes. This position is of high importance, as the Chairperson not only leads the board but also serves as the cadre controlling authority for IRS officers in this field. Additionally, the Chairperson is an ex officio Special Secretary to the Government of India and is appointed by the Appointments Committee of the Cabinet (ACC).

In addition to the Chairperson, the CBIC comprises several members, each overseeing specific domains:

Customs: Responsible for matters related to customs duties and regulations.

IT & Taxpayer Services: Focuses on information technology and services provided to taxpayers.

CE, ST & Legal: Handles central excise, service tax, and legal affairs.

GST & Tax Policy, Administration & Vigilance: Manages GST-related issues, tax policy, administration, and vigilance.

Investigation: Oversees investigative functions related to indirect taxation.

Key Functions of CBIC

The CBIC performs a broad range of functions critical to the administration of indirect taxes in India. These functions are pivotal for ensuring compliance with tax laws and for maintaining the integrity of the tax system.

Collection of Goods & Services Tax (GST):

The CBIC is responsible for the collection of GST, a significant component of the Indian taxation system. GST is a comprehensive indirect tax that has replaced multiple earlier taxes, simplifying the tax structure.

Central Excise Duty and Service Tax Collection:

Although GST has largely replaced central excise and service tax, the CBIC still manages the collection of these duties for specific goods and services where applicable.

Customs Duty Collection:

The board oversees the collection of customs duties at various points, including:

Land Customs Stations (LCS)

Inland Container Depots (ICDs)

Special Economic Zones (SEZs)

Container Freight Stations (CFSs)

International Airports and Seaports

Custom Houses and International Air Cargo Stations

Prevention of Smuggling:

The CBIC is tasked with preventing smuggling activities through various channels:

International Airports and Seaports: Ensures that smuggling activities are curtailed at major international transit points.

Land Customs Stations and Border Checkpoints: Monitors and controls smuggling across land borders.

Attached and Subordinate Offices

The CBIC oversees a network of attached and subordinate offices that support its operations. These offices handle various aspects of tax administration, compliance, and enforcement:

Directorate General Of Analytics And Risk Management

Directorate General Of Anti-profiteering

National Anti-profiteering Authority (GST)

Directorate General Of Audit

Directorate General Of Export Promotion

Directorate General Of GST Intelligence

Directorate General Of Goods & Services Tax

Directorate General Of Human Resource Development

National Academy Of Customs, Indirect Taxes & Narcotics

Directorate General Of Performance Management

Directorate General Of Systems & Data Management

Directorate General Of Taxpayer Services

Directorate General Of Valuation

Directorate General Of Vigilance

Directorate Of Revenue Intelligence

Directorate Of International Customs

Directorate Of Data Management

Directorate Of Logistics

Directorate Of Legal Affairs

Central Revenues Control Laboratories

Role of CBIC in the UPSC Examination

For those preparing for the UPSC examination, understanding the role and functions of the CBIC is essential. The board's activities are crucial in the context of indirect taxation and form an important part of the curriculum for aspirants aiming to join the Indian Administrative Service (IAS) or other related services.

Key Areas for UPSC Preparation:

Historical Evolution: Be familiar with the historical developments and the evolution of the CBIC from its origins to its current form.

Organizational Structure: Understand the roles and responsibilities of various members and offices within the CBIC.

Functions and Responsibilities: Know the primary functions performed by the CBIC, including tax collection, policy formulation, and smuggling prevention.

Attached Offices: Familiarize yourself with the various attached and subordinate offices and their specific roles.

Conclusion

The Central Board of Indirect Taxes & Customs (CBIC) is a crucial entity in India’s tax administration system, responsible for managing indirect taxes such as GST, customs duties, and central excise duties. Its functions are vital for maintaining compliance, preventing smuggling, and ensuring the efficient collection of taxes.

For UPSC candidates, a thorough understanding of the CBIC’s structure, functions, and historical background is essential for grasping the broader framework of India’s taxation system. This knowledge not only helps in examination preparation but also provides valuable insights into the functioning of one of India’s key governmental bodies.

Central Board of Indirect Taxes & Customs (CBIC): Overview

The Central Board of Indirect Taxes & Customs (CBIC) is a pivotal institution within the Indian tax administration system. It is responsible for the regulation and management of various indirect taxes, including Goods and Services Tax (GST), central excise duty, service tax, and customs duties, among others. This article provides a comprehensive overview of the CBIC, detailing its history, functions, organizational structure, and key responsibilities, and serves as a useful resource for those preparing for the UPSC examination.

What is the Central Board of Indirect Taxes & Customs (CBIC)?

The CBIC operates under the Department of Revenue, which is a part of the Finance Ministry of the Government of India. This board is the principal authority tasked with overseeing the implementation and administration of indirect taxes in the country.

Initially known as the Central Board of Excise and Customs (CBEC), the organization was rebranded as the Central Board of Indirect Taxes and Customs in 2018. The name change was part of a broader effort to reflect the expanded scope of its responsibilities and to streamline its operations under the evolving framework of indirect taxation in India.

The CBIC’s mandate includes policy formulation related to the levy and collection of central excise duties, customs duties, the Goods and Services Tax (GST), and the Integrated Goods and Services Tax (IGST). It also plays a critical role in preventing smuggling and drug trafficking to the extent specified by law.

Historical Background of CBIC

The origins of the CBIC can be traced back to the establishment of the Central Board of Revenue in 1924 under the Central Board of Revenue Act. This board served as the apex body overseeing the Income Tax Department. In 1964, a significant restructuring occurred, leading to the formation of two separate entities: the Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs. The latter was renamed the Central Board of Indirect Taxes and Customs in 2018, reflecting its expanded role in the indirect taxation system.

Organizational Structure

CBIC Members and Leadership

The CBIC is headed by the Chairperson, who is the senior-most officer of the Indian Revenue Service (IRS) specializing in Customs and Indirect Taxes. This position is of high importance, as the Chairperson not only leads the board but also serves as the cadre controlling authority for IRS officers in this field. Additionally, the Chairperson is an ex officio Special Secretary to the Government of India and is appointed by the Appointments Committee of the Cabinet (ACC).

In addition to the Chairperson, the CBIC comprises several members, each overseeing specific domains:

Customs: Responsible for matters related to customs duties and regulations.

IT & Taxpayer Services: Focuses on information technology and services provided to taxpayers.

CE, ST & Legal: Handles central excise, service tax, and legal affairs.

GST & Tax Policy, Administration & Vigilance: Manages GST-related issues, tax policy, administration, and vigilance.

Investigation: Oversees investigative functions related to indirect taxation.

Key Functions of CBIC

The CBIC performs a broad range of functions critical to the administration of indirect taxes in India. These functions are pivotal for ensuring compliance with tax laws and for maintaining the integrity of the tax system.

Collection of Goods & Services Tax (GST):

The CBIC is responsible for the collection of GST, a significant component of the Indian taxation system. GST is a comprehensive indirect tax that has replaced multiple earlier taxes, simplifying the tax structure.

Central Excise Duty and Service Tax Collection:

Although GST has largely replaced central excise and service tax, the CBIC still manages the collection of these duties for specific goods and services where applicable.

Customs Duty Collection:

The board oversees the collection of customs duties at various points, including:

Land Customs Stations (LCS)

Inland Container Depots (ICDs)

Special Economic Zones (SEZs)

Container Freight Stations (CFSs)

International Airports and Seaports

Custom Houses and International Air Cargo Stations

Prevention of Smuggling:

The CBIC is tasked with preventing smuggling activities through various channels:

International Airports and Seaports: Ensures that smuggling activities are curtailed at major international transit points.

Land Customs Stations and Border Checkpoints: Monitors and controls smuggling across land borders.

Attached and Subordinate Offices

The CBIC oversees a network of attached and subordinate offices that support its operations. These offices handle various aspects of tax administration, compliance, and enforcement:

Directorate General Of Analytics And Risk Management

Directorate General Of Anti-profiteering

National Anti-profiteering Authority (GST)

Directorate General Of Audit

Directorate General Of Export Promotion

Directorate General Of GST Intelligence

Directorate General Of Goods & Services Tax

Directorate General Of Human Resource Development

National Academy Of Customs, Indirect Taxes & Narcotics

Directorate General Of Performance Management

Directorate General Of Systems & Data Management

Directorate General Of Taxpayer Services

Directorate General Of Valuation

Directorate General Of Vigilance

Directorate Of Revenue Intelligence

Directorate Of International Customs

Directorate Of Data Management

Directorate Of Logistics

Directorate Of Legal Affairs

Central Revenues Control Laboratories

Role of CBIC in the UPSC Examination

For those preparing for the UPSC examination, understanding the role and functions of the CBIC is essential. The board's activities are crucial in the context of indirect taxation and form an important part of the curriculum for aspirants aiming to join the Indian Administrative Service (IAS) or other related services.

Key Areas for UPSC Preparation:

Historical Evolution: Be familiar with the historical developments and the evolution of the CBIC from its origins to its current form.

Organizational Structure: Understand the roles and responsibilities of various members and offices within the CBIC.

Functions and Responsibilities: Know the primary functions performed by the CBIC, including tax collection, policy formulation, and smuggling prevention.

Attached Offices: Familiarize yourself with the various attached and subordinate offices and their specific roles.

Conclusion

The Central Board of Indirect Taxes & Customs (CBIC) is a crucial entity in India’s tax administration system, responsible for managing indirect taxes such as GST, customs duties, and central excise duties. Its functions are vital for maintaining compliance, preventing smuggling, and ensuring the efficient collection of taxes.

For UPSC candidates, a thorough understanding of the CBIC’s structure, functions, and historical background is essential for grasping the broader framework of India’s taxation system. This knowledge not only helps in examination preparation but also provides valuable insights into the functioning of one of India’s key governmental bodies.

Download App

Explore More

Managing assets totalling over 1 crore+