Presentation on Administrative Structure for CBIT officers in GST arena. *CBIT=Central Board of Indirect Tax

Transcription

1 Presentation on Administrative Structure for CBIT officers in GST arena *CBIT=Central Board of Indirect Tax

2 ORGANIZATION CHART Union FM GST Council Central Board of Indirect Tax(CBIT ) Commissioner SGST-State # GST Commission erates Regions (number may be from 5 to 6 or more) Principal Chief Commissioner Divisions Ranges State- FM,Principal Secretary * Zones (coterminous with State)- Chief Commissioner *Apex level Coordination Committee # Zonal level coordination Committee

3 ORGANIZATION CHART Central Board of Indirect Tax(CBIT ) (Headed by Chairman-Secretary To GOVERNMENT OF INDIA Member GST (Secretary-GST Council) MEMBER CUSTOMS MEMBER (IT, POLICY & INFRA MEMBER CENTRAL EXCISE & Legacy Issues MEMBER P&V, Training MEMBER (L&J, Audit) The number of Members would be flexible. In addition to Additional Secretary Revenue, as Member Secretary of GSTC, Member GST shall also be the Member Secretary to the GST Council for CGST and IGST related issues. Board through Member-GST shall be the think tank to assist the Council in policy formulation in CGST and IGST matters.

4 ORGANIZATION CHART Member GST-Secretary to the GST Council GST Council, Principal Secretaries of States Operational Reportingfor data collection, reports, joint action Regions- Principal Chief Commissioner DGITI or Anti- Evasion Directorate

5 Member GST interaction with Principal Secretaries of States would be purely for operational requirements- Reports, Data Collection, Joint Action, pre-consultation for GST Council meeting etc. It will strengthen cooperative federalism and will provide a platform for better coordination between Centre and States. DGCEI to be rechristened as DGITI (Directorate General of Indirect Tax Intelligence). In GST regime, the tax base is bound to increase manifold times. The challenge would be to provide maximum facilitation, and at the same time ensure optimum compliance. In this context, the role of DGITI would be of paramount significance. It would be the country s premier intelligence agency to handle economic frauds and offences related to taxation. DGITI should have a pan India presence. The organisation shall be headed by an officer of DG rank. Every state should have regional units headed by ADG rank officer. Officers, having expertise in VAT laws, from state administration may be deputed to DGITI.

6 ORGANIZATION CHART MEMBER CENTRAL EXCISE & Legacy Issues Regions- Principal Chief Commissioner Central Excise Commissionerates Legacy Commissionerates

7 The Central Excise Commissionerates shall administer the Central Excise duty for products outside the purview of GST e.g. POL and sin goods. The administrative structure of these Commissionerates shall be the same as that of the existing formation. The Legacy Commissionerates shall handle all legacy issues such as pending adjudication, audit, investigation, legal issues etc. These commissionerates shall be created for a fixed period of 5 years, following which their existence shall cease. For ease of administration, the jurisdiction of the existing audit commissionerates may be made co-terminus for the new legacy commissionerates or the existing audit commissionerates may be converted to legacy commissionerates. This would make the transfer of previous files easier. The existing audit Commissionerates shall cease to exist and the audit work henceforth shall be done by the new executive commissionerates and DG audit.

8 ORGANIZATION CHART MEMBER (IT, POLICY & INFRASTRUCTURE) Regions- Principal Chief Commissioner for infrastructure issues DGPM DG Systems DG RMC GSTN

9 GSTN should have co-opted Member IT as de facto member and it shall share the data to the Board through this Member. DG, RMC- It is proposed National GST Risk Management Center to be created and headed by a senior officer of the rank of Director General. The Director General is to be assisted by four regional directorates, headed by officers of the rank of Additional Director Generals. The purpose of the Risk Management Center will be as follows- shall be responsible for the application of nationally coordinated approach to risk analysis, assessment and targeting of returns. shall identify, develop, update and maintain risk parameters in relation to trade, commodities, services and all stakeholders in the domestic supply chain. 24 x7 operational risk interdiction support to GSTN. RMD will have a strong data analysis unit supported by statistical experts, statistical tools and applications, seamless flow of data and information from agencies within and outside the Central and state tax administration. Shall carry out research and study best practices and provide training to field officers. Shall provide inputs for non-intrusive methods of investigation- such as risk based auditing, scrutiny etc.

10 Administrative structure of RMC DG, RMC ADG, RMC ADG, RMC ADG, RMC ADG, RMC Mumbai Delhi Chennai Kolkata Additional/ Joint Directors Additional/ Joint Directors Additional/ Joint Directors Additional/ Joint Directors Deputy/ Asst Directors (including officers on deputation from States) Deputy/ Asst Directors (including officers on deputation from States) Deputy/ Asst Directors (including officers on deputation from States) Deputy/ Asst Directors (including officers on deputation from States) Supt. (including officers on deputation from States) Supt. (including officers on deputation from States) Supt. (including officers on deputation from States) Supt. (including officers on deputation from States)

11 ORGANIZATION CHART MEMBER (L &J, Audit) Regions- Principal Chief Commissioner DG Audit Directorate of Legal Affairs Authorized Representati ves Tribunal and Settlement Commission, Advance Ruling etc. Appellate Commissioners

12 The Appellate Commissioners would be reporting to Regional Principal Chief Commissioners for administration and would be reporting to Member for legal issues. The Authorized Representatives (AR) will report to Chief Commissioner and below. As legacy pendency will be very huge and due to new tax regime, in initial years chances of litigation will be very high. To mitigate this, it is suggested that benches of tribunals may be created in each states and to wipe out legacy issue power of single bench may be increased up to Rs. 5 crore. The Directorate General of Audit will have under it specialized regional audit units. The audit done by this Directorate will be 360 degree Audit in all respect which will cover GST and Customs. It will increase ease of doing business for bigger assesses who have presence in multiple location. In addition to the audit done by DG, audit, the executive GST Commissionerates shall do the PCA work on the basis of risk parameters identified by RMC. The Audit Directorate will also be the nodal agency to impart field training to officers in CAAP, EA 2000 and create / develop new audit skills. The administrative structure of DG, Audit will be akin to that of DG, RMD.

13 ORGANIZATION CHART MEMBER (P&V),TRAINING Regions- Principal Chief Commissioner (Cadre Controlling for Group B, C and D) DGHRD NACEN DG NACEN REGIONAL

14 GST is a new law and the officers from our service as well as state officers have to be trained. As NACEN has been chosen the nodal agency to impart training in GST, a regional NACEN should be established in each state. NACEN Main Campus will be only for Group A officer training and for any specialized training of any subject of all India importance. Regional NACEN will train state officials and group-b and below officers. It shall also conduct research programs for service as well as for academicians.

15 ORGANIZATION CHART Regions- Principal Chief Commissioner GST Zones Custom Zones There can be5-7 regions in India i.e. North, South, East, West, North-East and Central Regions and will be headed by Principal Chief Commissioner and Regions would be divided in to GST Zones and Customs Zones. Both zones territories may be co-terminus with the States/UT of India. Further Principal Chief Commissioner would be the Cadre Controlling authority for the Group B,C and D. All the P&V functions like transfer, appointment, vigilance, posting would be under his/her control.

16 ORGANIZATION CHART GST Zones GST Commissionerate C.EX. Commissionerate & Legacy Commissionerate Customs Commissionerate Zone will be headed by the Chief Commissioner. For better coordination between Centre and States it is suggested that there will be Apex level and Zonal level Coordination Committee. Pr. Chief Commissioner of respective zone and Chief Secretary of States would attend the meeting of apex level committee. Commissioner CGST/IGST and Commissioner SGST will attend the Zonal coordination meeting which will be headed by Zonal CC. These meetings will be monthly/quarterly affair. The decision/minutes of this Committee would be presented before GSTC for reaching any decision.

17 Each GST and Central Excise Commissionerate would be headed by Commissioner. Itwould have 30divisions on average. The Anti-Evasion Wing should work from the Commissionerate Head Quarters. The Commissioner shall also liaise with the Commissioner SGST for intelligence sharing, joint-audit if state wishes so, joint actions, report and statistics etc. The Commissionerate can have State officers on deputation as well. Any issue of mutual importance can be discussed with the Commissioner SGST by the Commissioner GST and action can be worked out. The Sub-Commissionerates would be headed by Additional Commissioner/Joint Commissioner who would head 10 divisions on an average. ORGANIZATION CHART GST Commissionerate Sub- Commissionerate Anti-Evasion Wing GST Divisions

18 ORGANIZATION CHART GST Division Ranges Each division shall be approximately the size of the district. Further there may be more than one divisions in a district as well if the number of assesses in that district are more than 5000 i.e. the divisions would be as many as multiples of 5000 or may coincide with the block. This is for close engagement with trade. This number is subject to revision. The division would be headed by AC/DC and can have Group B, C and D staff on deputation from the State subject to maximum limit of 15-25%. The functions of the division would include report of taxes paid, refund given etc., levy and collection of CGST and IGST, stuffing of export containers, refund/rebate for exports, audit, help desk for assesses, aiding the SGST officers in case of joint audit, joint action, etc. The division head shall report to Commissioner SGST and Additional Commissioner/Joint Commissioner as well whereas the reporting to Commissioner SGST would be for operational requirements, report and data submission. That appraisal would be for 360 degree appraisal. Ranges would be co-terminus with 1000 assesses/20 sq km area as the case may be. It would be headed by Superintendent.

19 The administration structure post GST would be based on the principle of pooled sovereignty, mutual co-operation, cross reporting, meaningful control. The entire number of existing assesses, proposed increase of assesses, future growth etc., may be taken in to consideration while arriving at the hierarchy of administration. It is suggested that a combination of number of assesses and the geographical area would be required to divide the area as in metros/cities the number of assesses would be more whereas in the villages area would be the criterion. This is required so that the assesses are served near their places. This may be on the lines of de-limitation exercise. The re-working of the cadre strength on this basis and as suggested in the previous slides will result in re-jig which may result in excess manpower also, who may be send to the SGST administration on deputation basis if States agrees. It will increase mutual trust and co-operation. The theme of mutual cooperation is tried for the first time and if we are able to prove it, it would be huge benefit f or the service. There can be a deputation option for the state officers particularly at Group B,C and D at Division level and for Group A at sub-zone level. There shall be a ceiling of 15-25% as agreed by all.

20 The interaction between Zonal Chief Commissioner and Commissioner SGST would bring confidence to the State Governments incentre and be real co-operative federalism. The responsibility and role of NACEN, DG Audit, DGRMC, DGITI should increase on the lines suggested to bring credibility, smooth implementation, compliance verification for the department and trade as well. The traditional division structure of scrutiny should be replaced with audit and scrutiny. There shall be mutual exchange of intelligence and joint audit if agreed by the state. The review and revision powers shall be exercised through committee consisting of the Commissioner VAT and the jurisdictional GST commissioner, headed by the Principal Commissioner/Chief Commissioner.This will help in dispute resolution among the governments. There shall be a working arrangement wherein if the issue has monetary implication of Rs 5 Lakhs or the amount as fixed by the GST council and if the issue is non-recurrent for the assesse, then the decision of the Commissioner Appeals in such cases should be accepted even ifitis not in favour of the department and with the no precedentary value. It is a golden opportunity for the department to re-jig working structures to bring more efficiency and to bring accountability aswell.

21 This exercise will also result in re-distribution of manpower and further this re-distribution shall be done in most transparent manner keeping in view of the talent, potential, skillsets of the staff. With this exercise the infrastructure and vehicle issue to re-considered in a fresh perspective rather than traditional penny wise pound foolish attitude The reason for the making the Regional head as the cadre controlling authority is the wide jurisdiction which enables every staff s requirement/need to be fulfilled and further will help in meaningful redistribution.