Central Board of Indirect Taxes and Customs

The Central Board of Indirect Taxes and Customs (CBIC) is a government agency responsible for administering indirect taxes and customs duties in India. It functions under the Department of Revenue, Ministry of Finance. The CBIC was formed on 1 January 1964 by combining the Central Board of Revenue and the Central Board of Excise and Customs.

The CBIC is headed by a Chairperson, who is assisted by several Members. The Board has a presence across the country through its field formations, which include Customs Houses, Central Excise and Service Tax Commissionerates, and Directorates.

Functions and Responsibilities

The primary functions and responsibilities of the CBIC include:

• Formulation of policies concerning levy and collection of indirect taxes and customs duties
• Prevention of smuggling and combating tax evasion
• Supervision and monitoring of the field formations
• Providing guidance and clarifications on tax-related matters
• Representing the Government of India in international forums on matters related to indirect taxes and customs
• Facilitating trade by simplifying procedures and reducing compliance costs
• Promoting voluntary compliance through taxpayer services and education

The CBIC administers several indirect taxes, including the Goods and Services Tax (GST), Central Excise duty, Service Tax, and Customs duty.

Goods and Services Tax (GST)

The introduction of the Goods and Services Tax (GST) on 1 July 2017 was a significant tax reform in India. GST subsumed several indirect taxes, including Central Excise duty, Service Tax, and Value Added Tax (VAT). The CBIC plays a crucial role in the administration of GST, along with the state tax authorities.

The CBIC has taken several measures to facilitate the smooth implementation of GST, including the development of the GST Network (GSTN) portal, which serves as the IT backbone for GST. The Board has also been actively engaging with stakeholders to address their concerns and provide clarifications on GST-related matters.

Customs Administration

The CBIC is responsible for the administration of customs duties in India. It plays a vital role in facilitating international trade while ensuring compliance with customs laws and regulations. The Board has taken several initiatives to streamline customs procedures and reduce the time and cost of compliance for businesses.

Some of the key initiatives of the CBIC in the area of customs administration include:

• Implementation of the Single Window Interface for Facilitating Trade (SWIFT) system, which allows importers and exporters to file documents at a single point
• Introduction of the Risk Management System (RMS) for targeted screening of cargo
• Implementation of the Authorised Economic Operator (AEO) programme to provide faster clearance and reduced inspections for compliant businesses
• Promotion of e-filing and e-payment of customs duties

Capacity Building and Taxpayer Services

The CBIC lays significant emphasis on capacity building and taxpayer services. The Board has set up the National Academy of Customs, Indirect Taxes and Narcotics (NACIN) to provide training and professional development to its officers and staff. NACIN also conducts training programmes for other government agencies and foreign customs administrations.

The CBIC has also taken several initiatives to improve taxpayer services, including the setting up of Taxpayer Service Centres (TPSCs) and the launch of the Seva Kendra project. The Board has also been actively promoting the use of digital platforms for taxpayer services, such as the GST portal and the ICEGATE portal for customs-related services.

International Cooperation

The CBIC actively engages with international organizations and foreign customs administrations to promote cooperation and exchange of best practices. The Board represents India in the World Customs Organization (WCO) and participates in various WCO committees and programmes.

The CBIC has also signed several bilateral agreements and Memoranda of Understanding (MoUs) with foreign customs administrations to promote trade facilitation and combat customs fraud.