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

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What is Central Board of Indirect Taxes and Customs (CBIC)? Blog Image


The Central Board of Indirect Taxes and Customs (CBIC) has invited suggestions on the draft ‘Central Excise Bill, 2024’ from stakeholders.

Why in News?

  • The bill intends to replace the Central Excise Act of 1944 after its implementation.
  • The main aim of this bill is to remove outdated and redundant provisions following the introduction of the Goods and Services Tax (GST).
  • It addresses the long-standing demand from industry players to align excise duty provisions with GST legislation.

About Central Board of Indirect Taxes and Customs (CBIC):

  • CBIC (erstwhile Central Board of Excise and Customs) is a part of the Department of Revenue under the Ministry of Finance, Government of India.
  • CBIC administers all the indirect tax-related matters in India.
  • It deals with the tasks of formulation of policy concerning levy and collection of Customs, Central Excise duties, Central Goods & Services Tax and IGST, prevention of smuggling and administration of matters relating to Customs, Central Excise, Central Goods & Services Tax, IGST, and Narcotics to the extent under CBIC's purview. 
  • The Board is the administrative authority for its subordinate organizations, including Custom Houses, Central Excise and Central GST Commissionerates, and the Central Revenues Control Laboratory.
  • It also ensures that taxes on foreign and inland travel are administered as per the law, and the collection agencies deposit the taxes collected to the public exchequer promptly.
  • Under customs, matters relating to thecollection of customs duty at:
    • International Airports
    • Seaports
    • Custom Houses
    • International Air Cargo Stations
    • International Inland Container Depots (ICDs)
    • Land Customs Station
    • Special Economic Zones (SEZs)
    • Container Freight Stations (CFSs) are administered by the CBIC.
  • Organisation:
    • The CBIC is headed by a Chairman, who is appointed by the Indian Government.
    • The organization is divided into various divisions and zones, each headed by a Chief Commissioner or Director General.
    • The CBIC also has a GST intelligence wing, which is responsible for detecting and preventing tax evasion.

Q1: What is Excise Duty?

An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods produced within the country (as opposed to customs duties, charged on goods from outside the country). It is a tax on the production or sale of a good. This tax is now known as the Central Value Added Tax (CENVAT). It is mandatory to pay duty on all goods manufactured, unless exempted.

Source: Centre proposes new excise law, ease of doing business in focus