The Department of Revenue (DoR) is an institution under the Union Ministry of Finance, Government of India, responsible for the administration of all direct and indirect Union taxes. Its origin can be traced to the Central Board of Revenue established under the Central Board of Revenue Act, 1924, which initially managed both direct and indirect taxes. The problem it solved was centralizing the levy and collection of taxes to fund the government.
The Department works under the overall direction of the Union Finance Minister and is headed by the Secretary (Revenue). Its core mechanism involves two statutory boards, both constituted under the Central Board of Revenue Act, 1963, which handle the day-to-day administration. The Central Board of Direct Taxes (CBDT) oversees direct taxes, such as income tax and corporate tax, and administers the Income Tax Act, 1961. The Central Board of Indirect Taxes and Customs (CBIC) manages indirect taxes, including the Goods and Services Tax (GST) and Customs Duty.
The DoR connects to several key concepts and institutions, including the Enforcement Directorate and the Financial Intelligence Unit, India (FIU-IND), which are attached/subordinate offices that investigate economic offenses and enforce economic laws. A major recent change occurred when the Central Board of Excise and Customs (CBEC), which handled indirect taxes, was renamed the Central Board of Indirect Taxes and Customs (CBIC) in 2018. This change reflected its broader mandate following the introduction of the Goods and Services Tax (GST) in July 2017, which consolidated various indirect taxes. The fundamental structure of having two separate boards for direct and indirect taxes, established in 1964 when the original Board was bifurcated, has stayed the same.