Govt. of Rajasthan
Chief Minister’s PR Cell
CM approves the proposal of restructuring of Commercial Tax Department
Tax collection System to Become Easy
Functioning of Commercial Tax Department Will Be Better
Jaipur, September 24. Chief Minister Shri Ashok Gehlot has approved the proposal of restructuring of the Commercial Tax Department. The decision was taken looking at the changed scenario after the implementation of Goods and Service Tax (GST) and for better and effective implementation of GST in the State. The number of zones, regular circles and wards is being increased for a better administrative system. Along with this, the Appellate Authority Office has also been approved for the convenience of the taxpayers. The enforcement wing is being strengthened to stop tax evasion.
Creation of 15 Additional Posts Approved
Shri Gehlot has approved to create 15 additional posts of Rajasthan Commercial Tax Service and Rajasthan Commercial Tax (subordinate) Service. With this, the number of cadre in the department will increase to 1833.
New Zone at Bhiwadi
A new zone will be created at Bhiwadi for effective implementation of GST. With this, the number of administrative zones will become 16. Jaipur Zone – 4 and Jodhpur-2 will be made functional. The number of regular circles will be increased by one and a half times from 82 to 135. The number of regular wards will also increase to 320 from 296. With this, there will be ease for dealers in registration of complaints and assessment along with works related to revenue collection. After the introduction of GST, there is no relevance of special circles, works contracts and leasing tax, therefore these are being put to an end.
Appellate Authority Office at Kota for the Convenience of Taxpayers
For the convenience of taxpayers, Appellate Authority Office in the Kota zone has been approved. This will provide the facility for the taxpayers to appeal at the local level against the orders passed by the assessment officers. Business Intelligence Unit is being formed to strengthen the audit and anti-tax evasion work. Departmental officers will be included in this technically capable unit and this unit will effectively analyse the GSTN database and data on the e-way bill portal.
A tri-level Audit Structure and Cyber cell will be constituted
The Anti-Evasion Wing is being renamed as Enforcement Wing. Besides this, a cyber cell is being formed to identify the actual people involved in tax fraud. Along with, a tri-level audit structure will be made at the level of the state, zone and regular circle. Audit of big and complicated cases at the state and zone level can be ensured.
Taxpayer Care Unit for Redressal of Complaints of Taxpayers
The Taxpayer Care Unit is being constituted for redressing the complaints of taxpayers who are honestly discharging their tax liability. Eligible CA and Tax Practitioners will be included in this unit. Besides this, Central Registration Unit will be made for dealers to ensure simple, easy and quick registration. The registration work will be done according to the Standard Operating Procedure (SOP).
State Tax Academy Will Be Made Ultramodern
To make the State Tax Academy of Rajasthan (STAR) an ultramodern training institute, the changes taking place at present will be included and will be updated. Besides this, approval has been given to create necessary posts for the Authority for Advance Ruling and GST Appellate Tribunal’s state bench in Jaipur and area bench in Jodhpur.
Department’s Important Role in Tax Revenue Collection
The Commercial Tax Department plays an important role in the tax revenue collection of the State Government. Its contribution is around 50% in the tax revenue of the State. The tax revenue target for the financial year 2021-22 is more than Rs 60,000 crore. At present, RGST Act-2017, Rajasthan VAT Act – 2003 and Rajasthan Electricity (Duty) Act -1962 are being implemented in the State by this department.
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Government of Rajasthan
Finance (Tax) Department
F.9 (3)FD/Tax/2020
Jaipur, Dated: 24.09.2021
ORDER
Restructuring of Commercial Taxes Department
In view of changing times after introduction of GST and looking into the importance of this issue, Hon’ble CM announced restructuring of Commercial Taxes Department as budget announcement no. 218 in his budget speech of 2020-21 which reads as below.
“…………………………………………………………………………”
In order to implement the above budget announcement, sanction to the following is hereby accorded for the restructuring of Rajasthan Commercial Taxes Department and re-determination of Cadre strength of Rajasthan Commercial Taxes Service and Rajasthan Commercial Taxes Subordinate Service:
1. Strengthening of Business audit and Anti-evasion wings: With the introduction of GST, auditing of returns became the most important activity in place of assessment.
(i) A 3-tier business audit is hereby Teams at State level and Zonal level will take care of the big, complex cases which are allocated based on risk parameters. The rest of the cases will be dealt with at regular circle levels. Thus, all assessing authorities will be fully involved in business audit. This is expected to improve tax compliance to a great extent.
(ii) Since most of the GST is administered online, CTD officers work on e-way bill platform, Bo WEB and BIFA for day to day activities as well as for anti-evasion Instead of having only State and zonal level exclusive anti-evasion teams, all regular circle officers will be involved in anti-evasion work. More number of State level teams will be deployed to expand the department’s reach.
(iii) With this, zonal level separate anti evasion teams are hereby With this re-assignment of mandate, regular circles now move from being mere registration units to effective audit and anti-evasion units.
2. Taxpayer Care Unit:
(i) A Taxpayer Care Unit is hereby created to help taxpayers and resolve their grievances related to tax compliances.
(ii) This unit will be outsourced to a qualified agency consisting of adequate technical competence and expertise in GST law.
(iii) The outsourced agency would consist of two parts:
(a) Technical Resource Persons: who would be given access to dump-data received from GSTN and on that basis, it will have its own software/system to send reminders and notices/intimations as required.
(b) Experts of GST Law: Consisting of CAs and/or Tax practitioners to help resolve the grievances of the tax payers.
3. Central Registration Unit: At present, the ACTOs posted in regular wards are empowered to deal with the registration process which includes not only granting new registrations but also amendment and cancellation of the This mechanical process takes a lot of’ time and officers do not get enough time for revenue analysis. Thus,
(i) A central unit of registration stationed at HQ is hereby established consisting of one AC/ CTO and Six ACTOs.
(ii) All the Registration tasks would be created at central unit arid registration would be granted as per the decided SOP.
(iii) If any discrepancy is found in registration application or if field visit is required, then such task would be transferred to the jurisdictional proper officer. This will free officers of the routine work and they can focus on revenue intelligence and get more revenue.
4. Business Intelligence Unit (BIU):
(i) A Business Intelligence Unit is hereby constituted at head quarter level comprising of technically competent team and departmental officers.
(ii) The technical team will be well versed in application of data analytics of GSTN data base and E-way Bill The members of the technical team will be from the personnel hired under Technical Support Unit (TSU).
(iii) The BIU will be headed by ACCT (IT and BIU) and subordinate supporting The sample cases from any data report extracted by the technical team would be tested/validated in the field by the BIU CTD officers.
5. Enforcement: The establishment of BIU will also enhance the department’s analyzing All the information of business is readily available on the GSTN and E-way Bill Portals giving an opportunity to equip all the officers with enforcement capabilities.
(i) The name of “Anti-Evasion Wing” stands changed to “Enforcement Wing”. This wing will be headed by one ACCT (Enforcement) and will have 3 DC (1 RAS, 2 RCTS), 9 AC/CTO and 18 ACTOs.
(ii) The present Central Anti-Evasion wing with State wide jurisdiction is retained and strengthened to 9 teams located at The wing would act primarily as per the BIU inputs and would take intelligence based action with respect to enforcement activities.
(iii) Anti-evasion wings at zone level hereby stand Instead of exclusive anti-evasion wings at zonal level, all the regular circles will be involved in anti-evasion activities thereby increasing the reach of the enforcement set up.
(iv) DC (Adm.) will be able to utilize the services of all officers in the zone as per the requirement with proper authorization.
6. Business Audit: Audit is a challenging task in GST era as there is no concept of regular assessment in GST This necessitates well organized Audit system in the department.
(i) For effective system of Business Audit the cases for business audit will be selected at HQ level and will be divided into three categories:
(a) Central Business Audit teams for selected cases of statewide importance will be created at HQ level having statewide These central teams would act as role model for rest of the field officers at zonal level and the issues coming out of the audits from the central teams will be shared with the zonal officers to work accordingly.
(b) One dedicated audit circle in every zone will be created for audit of selected cases having impact in the zone.
(c) Audit of the rest selected cases will be done by the regular circle officers of the zone. This makes business audit the most important activity.
(ii) The audits conducted by the zonal audit officers and the zonal regular officers will be monitored by respective DC (Adm) and the cases would be presented by him before the Monitoring Committee Meeting (MCM). The cases audited by the central audit wing will also be presented before MCM.
(iii) The existing system of Business Audit at zone level comprising of one DC, Two Circles headed by 2 AC/CTO and 2 ACTOs at each zone now stands abolished.
(iv) There will be 18 audit teams (6 DC, 18 AC/CTO, 18 ACTO) at the State level and one audit team each at zonal level (16 AC/CTO and 16 ACTOs).
7. Zonal Functional Formation:
(i) The present zonal level setup was constituted to cater the needs as per the Value Added Tax Act in the State and now needs to be revamped in respect of challenges under GST era.
(ii) In view of this, one new zone i.e. Bhiwadi is created and the already sanctioned zones Jaipur-4 and Jodhpur-2 will be made functional. With this, the number of zones will be 16 (Ajmer, Alwar, Bhiwadi, Bhilwara, Bikaner, Bharatpur, Sriganganagar, Jodhpur-1, Jodhpur-2, Kota, Pali, Udaipur, Jaipur-1, Jaipur-2, Jaipur-3, Jaipur-4). This leads to an increase in number of regular circle from existing 82 to 135 and the number of regular wards will go up from 296 to 320.
(iii) The existing Special Circles, Works Contract and Leasing Tax Circles do not have much relevance and therefore, these circles now stand abolished.
8. Appellate Authorities:
(i) At present, there are 9 appellate authorities in the State. Three at Jaipur, one each at Jodhpur, Ajmer, Alwar, Bikaner, Bharatpur, and Udaipur.
(ii) There is no separate Appellate Authority for Kota zone and its appeals are being filed before Appeal Authority To facilitate the tax payers of the Kota zone, new Appellate authority is now created at Kota.
(iii) Therefore, the number of present 9 Appellate Authorities is hereby increased to 10.
(iv) At present the Appellate Authorities have been left to work alone without proper support of the sub-ordinate Therefore, now the role of AC/CTO posted with Appellate Authorities is changed from being representative of the Department to assisting the functioning of Appellate Authority. One ACTO will now be sanctioned for each of these Authorities.
9. Authority for Advance Ruling: Section 96 of RGST Act provides for Constitution of Authority for Advance Though-the numbers of applications for advance ruling are limited but looking into the nature and importance of work, now separate post of one DC along with one AC/CTO is created for its effective functioning.
10. GST Appellate Tribunal:
(i) The GST Council vide notification S.O 3009(E) dated 21.08.2019 has notified two benches of the Tribunal, one at Jaipur (State Bench) and other at Jodhpur (Area Bench) for the State of Rajasthan which will be functional very soon.
(ii) Each bench shall consist of a Judicial Member, one member from Center and one member from Therefore, two new posts in the cadre of RCTS of ACCT level are hereby created.
11. Cyber Cell: A cyber cell for the department supported by efficient and advanced tools is now created under the IT section to identify the actual person indulged in the tax fraud
12. Re-orientation of State Tax Academy of Rajasthan (STAR):
(i) Training programs need to be designed with the help of BIU in line with the NACEN and CBIC.
(ii) A yearly Training Calendar will be published at the beginning of every year. On the basis of the yearly calendar, panels including Department Officers, Central GST officers, CAs and other experts will be formed for training.
(iii) The STAR will be sufficiently equipped with state of art library including digital subscriptions and IT infrastructure.
13. In view of the above, the re-determined structure and strength can be summarized as below:
(i) Administrative Zones –
(a) For effective and micro-monitoring of the revenue and the tax payers, the existing 15 administrative zones are hereby re-organized into 16 administrative zones.
(b) The reorganized zones are Ajmer, Alwar, Bhiwadi (new), Bhilwara, Bikaner, Bharatpur, Sri Ganganagar, Jodhpur-1, Jodhpur-2, Kota, Pali, Udaipur, Jaipur-1, Jaipur-2, Jaipur-3, Jaipur-4.
(ii) Enforcement – Central Enforcement-1, Central Enforcement-2, Central Enforcement-3 : 3 {DC(1 RAS +2 RCTS), 9 AC/CTO, 18 ACTO}
(iii) Central Business Audit Wing – 18 teams (6 DC, 18 AC/CTO and 18 ACTO)
(iv) Zonal Business Audit Circles – 16 (16 AC/CTO and 16 ACTO)
(v) Zonal Functional Formation – 16 DC (11 RCTS + 5 RAS), 135 AC/CTO (135 Regular Circles) and 320 ACTO (320 Regular Wards).
(vi) Business Intelligence Unit –
(a) 1 ACCT, 1 DC, 3 AC/CTO and 3 ACTOs
(b) BIU will now be part of VAT&IT. ACCT(VAT&IT) is hereby re-designated as ACCT(TT&BIU)
(vii) Appellate Authorities – 10 ACCT, 10 AC/CTO and 10 ACTOs
(viii) HQ Setup – 8ACCT (2 IAS, 1 RAS and 5 RCTS), 16 DC, 28 AC/CTO and 38 ACTO
(ix) GST Appellate Tribunal – 2 ACCT,1 DC and 2 AC/CTO
14. The post wise required strength is hereby re-determined as under:
| SUMMARY OF STRENGTH OF CTD | ||
| POST | Existing Strength | New Sanctioned Strength |
| ACCT | 20 | 22 |
| DC | 40 | 40 |
| AC | 90 | 91 |
| CTO | 136 | 136 |
| ACTO | 405 | 414 |
| JCTO | 529 | 531 |
| TA | 598 | 599 |
| TOTAL | 1818 | 1833 |
15. To give effect to the above re-structuring, statutory orders will be issued separately by competent authority for re-determination of cadre strength of RCTS and RGTS (Subordinate), allocation of different posts at various levels and in offices, re-defining the boundaries of zones, circles and wards, abolition of Special and Works Contract and Leasing Tax Circles and re-allocation/transfer of files.
This bears the concurrence of Finance Department (Expenditure-Ill) vide their I.D. no. 112100043 dated 20,09.2021.
By order of the Governor,
(T.Ravikanth)
Secretary, Finance (Revenue)
Copy forwarded to the following for information and necessary action:
1. Principal Secretary to Hon’ble Chief Minister (Finance Minister).
2. Accountant General, Rajasthan, Jaipur.
3. Commissioner, Commercial Taxes Department, Rajasthan, Jaipur.
4. PS to Principal Secretary, Finance.
5. PS to Secretary, Finance (Revenue).
6. PS to Secretary, Finance (Budget).
7. PS to Special Secretary, Finance (Expenditure).
8. Guard File.
(Tina Dabi)
Joint Secretary to the Government
Download Full Text of order about Restructuring of Rajasthan Commercial Taxes Department
