What is Central Board of Excise and Custom under GST

Posted on 22 April 2023 Category : GST terms

Central Board of Excise and Custom Means

Central Board of Excise and Custom (CBEC)

The details about Central Board of Excise and Custom are explained here.

Central Board of Excise and Custom renamed as Central Board of Indirect taxes and Customs (CBIC) is the nodal national agency responsible for administering Customs, Central Excise, and Service Tax & Narcotics in India. The Customs & Central Excise department was established in the year 1855 by the then British Governor General of India, to administer customs laws in India and collection of import duties / land revenue. It is one of the oldest government departments of India.

Currently the Customs and Excise department comes under the Department of Revenue, Ministry of Finance. The agency is staffed by IRS officers who start their careers as Assistant Commissioners in the field and within 20–25 years rise to the post of Chief Commissioners, with a few senior most officers who become Members of CBEC / CESTAT / Settlement Commission.

In a significant relief for exporters who have been facing difficulties under the new tax regime, the Finance Ministry has now relaxed rules for Goods and Services Tax and has said that exports can continue under existing bonds and letters of undertaking till July 31. Exporters can now submit bonds or LUTs in the revised format for GST by the end of the month.

“Various communications have been received from the field formations and exporters that difficulties are being faced in complying with the procedure prescribed for making exports of goods and services without payment of integrated tax with respect to furnishing of bonds or LUT,” said the Central Board of Excise and Customs (CBEC) in a recent circular.

Under rule 96A of Central GST, exporters have to furnish a bond or LUT in Form GST RFD-11 instead of payment of integrated GST to release their consignments. The CBEC has clarified that exporters can submit a running bond instead of a consignment-wise bond, which would cover the amount of tax involved in the export as estimated by the exporter.

Further, the bank guarantee should not exceed 15 per cent of the bond amount and jurisdictional Commissioner can make a relaxation based on the track record of the exporter. The CBEC has also said that the LUT will be valid for a period of 12 months. The CBEC has notified persons who are eligible to submit an LUT instead of a bond. These are status holders under the Foreign Trade Policy 2015-2020 or those who have received foreign inward remittances of over ?1 crore in the preceding year. Urging Central tax officers to help exporters, the CBEC further said that exporters can submit the bond or LUT to the jurisdictional Deputy or Assistant Commissioner having jurisdiction over the principal place of business of the exporter.

The relaxations by the CBEC come after reports that exports were stuck at the factory gate due to a lack of procedural clarity on submitting the bond or LUT. The other option of payment of IGST (which is levied on exports and is refundable later) would have created cash flow problems. While the Commerce Ministry and CBEC were trying to ensure a smooth roll out for exporters, there were worries that the lack of clarity could also impact exports in the coming month.

The information on Central Board of Excise and Custom is detailed above. Comment below your thoughts on Central Board of Excise and Custom

Learn Exports Imports Free, Click here

Click here to know GST rate of your goods or service

Sec 168 of CGST Act, 2017 Power to issue instructions or directions

Section 163 of CGST Act, 2017 Levy of fee

Publication of information in respect of persons in certain cases, Section 159 of CGST Act, 2017

Section 156 Persons deemed to be public servants, CGST Act, 2017

Power to collect statistics, Section 151 of CGST Act, 2017

Goods and services tax compliance rating, Sec 149 of CGST Act, 2017

Section 146 of CGST Act, 2017 Common Portal

Section 145 of CGST Act, 2017 Admissibility of micro films, facsimile copies of documents

Job work procedure, Section 143 of CGST Act, 2017