This would probably be the last year that Central Excise celebrated the Central Excise Day here on Friday. The Central Excise Day is celebrated every year on February 24.
Many officers feel that the change of the nomenclature ‘Central Excise’ is on the anvil and the Central Board of Central Excise may soon be replaced by Central Board of Goods and Services Tax.
Speaking to The Hindu on the occasion Commissioner of Central Excise, Customs and Service Tax B. Hareram said “though GST will be implemented soon, the Excise Act will continue, as products under smoking and non-smoking categories and petroleum-oil-lubricant (pol) products, including industrial alcohol, will continue to attract Central Excise. In case of tobacco products, they will attract both Central Excise and GST.”
Giving a broad understanding to GST sharing, he said GST was designed to be shared between the respective states and Central government.
“For turnover below ₹ 1.5 crore, the States share will be 90% and the Centre’s will be 10%. But if the turn turnover crosses Rs. 1.5 crores, the sharing ratio will be 50 % each,” the Commissione said.
Jurisdiction
But coming to investigation part, he said it will be under concurrent jurisdiction. “Both State body and Central Excise or GST board, can investigate and it will be on first-come-first-serve basis and it will be across all tax base.”
On whether GST would reduce the tax inflow, he said it will increase the tax revenue.
“The tax net will increase exponentially. Every invoice is linked to a tax credit and this will broaden the tax net and more people will be tax compliance. It will increase accountability and the tax net will always be on a higher trajectory. Both the services sector that today accounts for about 40 % and the manufacturing sector expected to grow, the income will automatically go up both for the State and the Centre,” the Commissione said.
On last year revenue from Vizag zone he said Customs collection was about ₹ 6824 crore, Central Excise ₹ 14,569 crores and Service Tax ₹ 2549 crore, Mr. Hareram said.
