The department is headed by a senior IAS officer designated as Commissioner, Commercial Taxes. In the exercise of his functions the Commissioner is assisted by Additional Commissioner, Joint Commissioners, Deputy Commissioners, Assistant Commissioners of Commercial Taxes and Commercial Taxes Officers at the Headquarter level.
For purposes of administrative convenience the state is divided into 9 Administrative Divisions, 7 Appeal Divisions & 4 Audit Divisions headed by a Joint Commissioner of Commercial Taxes (Admn), joint Commissioner of Commercial Taxes (Appeal) and Joint Commissioner of Commercial Taxes (Audit) respectively. Audit Division has been created to Audit Account of Dealer selected for Audit under Section-26 of the Bihar Value Added Tax Act 2005. Each of the aforesaid 9 Administrative Division is further sub-divided into circles —a total of 50 Circles in the State as a whole. Each of these circles is headed by a Deputy Commissioner of Commercial Taxes or an Assistant Commissioner of Commercial Taxes depending upon the quantum of revenue collected by the Circle.
At the divisional level, under the direct control of the Joint Commissioner of Commercial Taxes, there is a Bureau of Investigation. The entire aforesaid organizational structure is knit together with a clearly delineated command and control structure.
The Circle is the basic activity centre of the department, the level at which the actual work of revenue collection of and the administration of the Statutes entrusted to the department is carried out. It is at this level that decisions taken at the Headquarters regarding administration of the various statutes are implemented for collection of revenue.
The department has a total sanctioned strength of 520 and an actual working strength of 375 officers who are assisted by some 1000 assistants. This well-knit system has been put into place to administer some spread all over the state.