CBIC Full Form

<<–2/”>a href=”https://exam.pscnotes.com/5653-2/”>h2>Central Board of Indirect Taxes and Customs (CBIC)

What is CBIC?

The Central Board of Indirect Taxes and Customs (CBIC) is the apex organization for administering indirect taxes in India. It is a statutory body established under the Central Boards of Revenue Act, 1963. CBIC is responsible for the administration of various indirect taxes, including:

• Customs Duty: Levied on goods imported into or exported from India.
• Central Excise Duty: Levied on the manufacture of goods within India.
• Goods and Services Tax (GST): A comprehensive Indirect Tax levied on the supply of goods and services within India.
• Service Tax: Levied on the provision of services within India.

Structure of CBIC

The CBIC is headed by a Chairman, who is an Indian Revenue Service (IRS) officer of the rank of Special Secretary to the Government of India. The Chairman is assisted by a Board comprising of Members (IRS officers of the rank of Additional Secretary to the Government of India). The CBIC has a hierarchical structure with various functional divisions and field formations.

Table 1: Structure of CBIC

Functional Divisions:

• Customs: Responsible for the administration of customs duty, including import and export regulations.
• Central Excise: Responsible for the administration of central excise duty, including the regulation of manufacturing activities.
• GST: Responsible for the administration of GST, including the registration of taxpayers, filing of returns, and collection of tax.
• Service Tax: Responsible for the administration of service tax, including the regulation of service providers.
• Enforcement: Responsible for the enforcement of indirect Tax Laws, including investigation and prosecution of Tax Evasion cases.
• Training: Responsible for the training of CBIC officers and staff.
• Information Technology: Responsible for the development and maintenance of IT systems for the administration of indirect taxes.

Field Formations:

• Commissionerates: The primary field formations of CBIC, responsible for the administration of indirect taxes in a particular geographical area.
• Ranges: Sub-units of Commissionerates, responsible for the administration of indirect taxes in a specific area within a Commissionerate.
• Units: Sub-units of Ranges, responsible for the administration of indirect taxes in a specific area within a Range.

Functions of CBIC

The CBIC performs a wide range of functions, including:

• Policy Formulation: Formulating policies and procedures for the administration of indirect taxes.
• Law Enforcement: Enforcing indirect tax laws and regulations.
• Tax Collection: Collecting indirect taxes from taxpayers.
• Taxpayer Services: Providing services to taxpayers, such as registration, filing of returns, and refunds.
• Research and Development: Conducting research and development activities to improve the administration of indirect taxes.
• International Cooperation: Collaborating with other countries on matters related to indirect taxes.

Key Initiatives of CBIC

The CBIC has undertaken several initiatives to improve the administration of indirect taxes, including:

• Implementation of GST: The CBIC played a key role in the implementation of GST in India in 2017.
• Digitization of Tax Administration: The CBIC has been actively digitizing its processes, including online registration, filing of returns, and payment of taxes.
• Faceless Assessment: The CBIC has introduced faceless assessment, where tax assessments are conducted by officers located in different parts of the country.
• Use of Technology: The CBIC is using technology to improve its efficiency and effectiveness, such as data analytics, Artificial Intelligence, and blockchain.

Impact of CBIC on the Indian Economy

The CBIC plays a crucial role in the Indian economy by:

• Generating Revenue: The CBIC collects a significant amount of revenue for the government, which is used to fund public services.
• Promoting Trade: The CBIC facilitates international trade by simplifying customs procedures and reducing the cost of doing business.
• Ensuring Fair Competition: The CBIC ensures fair competition by preventing tax evasion and fraud.
• Protecting Consumers: The CBIC protects consumers by ensuring that goods and services are taxed fairly and that they are not being sold illegally.

Frequently Asked Questions (FAQs)

Q1: What is the difference between direct and indirect taxes?

A: Direct taxes are levied on the income or wealth of individuals and corporations, while indirect taxes are levied on the consumption of goods and services.

Q2: What are the benefits of GST?

A: GST has several benefits, including:

• Simplified Tax Structure: GST has simplified the tax structure by replacing multiple taxes with a single tax.
• Reduced Tax Burden: GST has reduced the overall tax burden on businesses and consumers.
• Improved Efficiency: GST has improved the efficiency of the tax administration system.
• Increased Transparency: GST has increased transparency in the tax system.

Q3: How can I file my GST return?

A: You can file your GST return online through the GST portal.

Q4: What are the penalties for tax evasion?

A: The penalties for tax evasion can vary depending on the severity of the offense. They can include fines, imprisonment, or both.

Q5: How can I contact the CBIC?

A: You can contact the CBIC through its website or by calling its helpline number.

Table 2: Key Statistics of CBIC

Table 3: Key Initiatives of CBIC