2022-10-19 08:13:28

CBIC Extends Concessional Custom Duty on Import of Edible Oil till March 2023

Introduction

Central Board of Indirect Taxes and Customs is a part of the Revenue Department under the Ministry of Finance, Government of India. CBIC deals with the tasks of formulation of policy that concern the levy and collection of Customs, Central Excise duties, prevention of smuggling, and administration of matters relating to Customs, Central Goods & Services Tax, IGST, and Narcotics under the purview of CBIC's. It is the administrative authority for its subordinate organizations which include Central Excise and Central GST Commissionerates and the Central Revenues Control Laboratory.

CBIC Members

The CBIC Chairperson is the senior-most Indian Revenue Service officer in India. Apart from being the cadre controlling authority of the IRS, he/she is also an ex-officio Special Secretary to the Government of India. The Chairperson is appointed by the Appointments Committee of the Cabinet.

Apart from the chairperson, there are members for Customs, IT & Taxpayer Services, CE, ST and Legal, GST & Tax Policy, and Investigation.

CBIC Functions

In India, CBIC administers indirect taxes like; goods and services tax, and customs. Some functions of CBIC are given below:

The main function of the CBIC is to Collection of Goods & Services Tax and previously Central Excise Duty and Service Tax.
CBIC works for the Collection of Customs Duty on Land Customs Stations, Inland Container Depots, Economic Zones & Container Freight Stations.
CBIC works on Duty at International Airports of collection of customs, Seaports, Custom Houses, International Air Cargo Stations, and International ICDs.
CBIC Prevented Smuggling on International Airports & Sea.
CBIC Prevented Smuggling through Land Customs Station & Border Checkpoints.

Central Board of Indirect taxes and Customs Extends Concessional Custom Duty on Import of Edible Oil

The Central Board of Indirect Taxes and Customs has extended existing concessional import duties on specified edible oils from 31st August 2022 up to 31st March 2023. The main motive of the CBIC is increasing domestic supply and keeping prices under control.

The concessional customs duty on edible oil import has been extended by another 6 months which means the new deadline will now be on March 2023. Prices of edible oil have been on a declining trend managed by a fall in global charges. In India, with falling global rates and lower import duties and retail prices of edible oils have fallen considerably.

The current duty structure on unprocessed palm oil, RBD palm oil, crude soybean oil, refined soybean oil, and crude sunflower oil remains unchanged till 31st March 2023. The import duty on crude varieties of palm oil, soybean oil, and sunflower oil is presently zero. However, after taking into account 5% agarics and 10% social welfare cess, the effective duty on unprocessed varieties of these three edible oils touches 5.5%.

The basic customs duty on refined varieties of palm oil and refined palm oil is 12.5%, while the social welfare cess is 10 per%. So, the effective duty is 13.75%. The basic customs duty is 17.5% for refined soybean and sunflower oil and taking into account the 10% social welfare cess, the effective duty comes to 19.25%.

Missions of the CBIC

The mission of the CBIC is given below:

Prepared progressive tax policies and enable to process of smooth economic activities.
Realizing revenue in a fair, equitable, and transparent manner.
Managing cross-border movements of goods and people to make sure the safety and security of citizens and the economy of the country.
Facilitating capacity increment of all stakeholders to improve compliance.
Adopting international best practices, promoting bilateral, and multilateral international cooperation.
Investigate human capital for achieving a high level of integrity, honesty, competency, and commitment.
Administration of goods and services tax across India in harmony with the state tax administrators.
Revolutionary use of technology & techniques for maximum facilitation and minimal intervention.
It is combating tax eluding and commercial frauds with interventions that are based on risk assessment using analytics and predictive technology.

Conclusion

It concluded that the Central Board of Indirect Taxes and Customs is a part of the Revenue Department under the Ministry of Finance, Government of India. CBIC deals with the tasks of formulation of policy that concern the levy and collection of Customs, Central Excise duties, prevention of smuggling, and administration of matters relating to Customs, Central Goods & Services Tax, IGST, and Narcotics under the purview of CBIC's. The main function of the CBIC is to Collection of Goods & Services Tax and previously Central Excise Duty and Service Tax. The Central Board of Indirect Taxes and Customs has extended existing concessional import duties on specified edible oils from 31st August 2022 up to 31st March 2023.