Human resource wing of the CBEC has started working on a blue-print for administrative restructuring of the department to prepare it for implementing the proposed Goods and Services Tax (GST), a new regime which will subsume most of the indirect taxes.
The Directorate General of Human Resource Development (DGHRD) has been directed to "initiate the exercise of formulating a proposal" for administrative restructuring of the formations under CBEC in the "ensuing GST regime", the CBEC said in a communication to its top officials.
The restructuring of Central Board of Excise and Customs (CBEC) field formations will become necessary as the GST regime subsume various indirect taxes including excise duty, service tax and sales tax into one uniform rate.
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The Constitution Amendment Bill on GST is stuck in the upper house as the opposition Congress is seeking three key amendments in the proposed law, derailing the government's plans to roll out GST from April 2016.
The ruling party does not enjoy majority of its own in the upper house. Congress, the main opposition party in the house, wants three amendments in the bill.
It's three demands are a cap on the GST rate in the Constitution itself, removal of the proposed 1 per cent additional tax on inter-state movement of goods and setting up a judicial panel to adjudicate disputes among states.
Finance Minister Arun Jaitley had said he hopes the Congress would "see reason" and help in passage of GST legislation in the Budget session of Parliament beginning next month.
The Bill was passed by the Lok Sabha last year but the
government could not muster required numbers for its passage in Rajya Sabha that time due to strong opposition by Congress and some other political parties.
Meanwhile, the BJP today also issued a whip to its members asking them to be present in the House for the next three days during which it expects the legislation to be passed.
Another amendment that the government is likely to bring in the bill is to spell out the principle for setting the rate of tax to be fixed to ensure that neither does it hurt the revenue of states nor the consumer.
The key bill is likely to see the light of the day and get passed as almost all the parties are now on board, according to top government sources.
"We are trying to bring on board everyone on the key legislation and are holding talks to all and clearing their doubts," a senior government official said.
Intended to convert 29 states into a single market, the new indirect tax regime was earlier planned to be introduced from April 1 this year, but the deadline was missed as the legislation to roll it out remained in limbo in the Opposition-dominated Rajya Sabha.
