Ahead of the implementation of Goods and Services Tax (GST), the process of reorganisation of the Central Board of Excise and Customs (CBEC), which started in March this year, is in its final stage and the Ministry of Finance is likely to unveil its renamed version, the “Central Board of Indirect Taxes and Customs (CBIC)”, in mid-June this year.
Registration for the GST is already in process and the date for its implementation has been fixed for 1 July. However, tax experts are not sure about the GST being launched before 1 September.
“The reorganisation procedure of the CBEC has almost reached its final stage and the Ministry of Finance is likely to unveil the renamed organisation CBIC in mid-June this year. The new organisation will be interlinked to the existing tax department in terms of Value Added Tax, Service Tax, and Sales Tax, among others,” a senior tax official working in CBEC told The Sunday Guardian.
“The proposed CBIC will have 21 zones, 101 GST taxpayer services commissionerates comprising 15 sub-commissionerates, 768 divisions, 3969 ranges, 49 audit commissionerates and 50 appeals commissionerates,” an official revealed.
The renamed body with an all-India presence will ensure providing services to all taxpayers through an indirect tax administration structure. Also, for a strong indirect tax network, the directorate general post under CBEC is being strengthened in CBIC, the official confirmed.
Reorganisation of the CBEC for an effective implementation of the GST was approved by Finance Minister Arun Jaitley. “The existing Central Excise and Service Tax under the CBEC is being re-organised to implement and enforce the provisions of the proposed GST laws,” the same official cited above said.
“The proposed CBIC will supervise the work of all its field formations and directorates and assist the government in policy making in relation to GST. Also, the new institution will continue to carry out the functions of Central Excise and Customs,” the official cited above added.
To deal with GST, a formal training for tax officials at the all-India level has started and for this purpose, the existing training establishment is being renamed as National Academy of Customs, Indirect Taxes and Narcotics. Range level staff to zonal directors will be trained before the launch of GST.