Renaming the Central Board of Excise
(CBEC) may not come about immediately as the revenue
department may introduce amendments to at least five Acts only in the upcoming monsoon session next month.
duty alongside nearly a dozen other central and state levies being taken over by the Goods and Services Tax (GST), the ambit of the CBEC
is set to change and widen.
Finance Minister Arun Jaitley
in late March had approved the reorganisation of field formations of the CBEC
for implementation of GST, according to which the body is being renamed as the Central Board of Indirect
Taxes and Customs
This requires legislative approval as the government has to amend the mother Act, which is the Central Boards of Revenue
(CBR) Act, 1963.
Also, amendments are required in the Central Excise
Act, 1944, the Customs
Act, 1962, and more recently notified the Central Goods and Services Tax (CGST) Act and the GST
Compensation (Compensation to States) Act, among others.
"The amendments would be necessary for these Acts as the Central Board of Excise
is mentioned in certain provisions. This has to be replaced with CBIC.
Besides, there will be certain other Acts which mention CBEC.
We also have to put in one line in the amendments that wherever CBEC
is mentioned, it will be replaced automatically by CBIC," an official told PTI.
The amendments may be introduced in the monsoon session of Parliament, which is slated to begin from July 17.
Since the CBR Act provides for constitution of separate boards of revenue
taxes and excise
and Customs, the name of CBEC
has to be replaced with CBIC
in the Act.
According to the CBR Act, the central government, in place of the Central Board of Revenue, will constitute two separate boards of revenue
to be called the Central Board of Direct
Taxes (CBDT) and the Central Board of Excise
(CBEC), and each such Board will be subject to the control of the central government.
Also, the Customs
Act refers to the 'board' as the Central Board of Excise
constituted under the CBR Act, 1963.
The CGST Act and the GST
(compensation to states) Act mention CBEC
while the Integrated GST
(IGST) and the Union Territory GST
(UTGST) talks of only 'board' without elaborating.
With legislative approval not in place, the CBEC
has been notifying certain sections of CGST and IGST Acts as a precursor to the rollout of GST
from July 1.
It has already notified 18 sections in the CGST Act and six of the IGST Act and come out with final rules under the new indirect
While a section of officials in the revenue
department believe that renaming of the CBEC
is not that urgent and the amendments can be taken up in the Budget session, as the focus should right now be on reducing hassles in the new regime, some feel it needs to be done as soon as possible, the official said.
According to the reorganisation plan, the proposed CBIC
will supervise the work of all its field formations and directorates and assist the government in policymaking in relation to GST, continuing central excise
levy and Customs
will have 21 zones and GST
Taxpayer Services Commissionerates.
The biggest indirect
tax reform since Independence, GST
will replace 16 different levies, including excise, Customs, service tax and VAT, and transform India into a single market for seamless transfer of goods and services.