CBIC Issues Circular on Assignment of Proper Officers under GST
CBIC Issues Circular on Assignment of Proper Officers under GST
The Central Board of Indirect Taxes and Customs (CBIC) has released Circular No. 254/11/2025-GST dated 27 October 2025 to specify which officers will act as “proper officers” under key provisions of the CGST Act, 2017. This clarification has been issued by the GST Policy Wing of the Ministry of Finance and aims to bring consistency and transparency in the handling of adjudication and penalty proceedings.
Earlier circulars from 2017 and 2018 had already assigned proper officers for registration, composition levy, and other provisions, but certain new sections were not covered. The present circular now designates proper officers under:
→ Section 74A – determination of tax not paid, short paid, or ITC wrongly availed for FY 2024-25 onwards.
→ Section 75(2) – when a court or appellate authority finds that a notice under section 74(1) is unsustainable due to lack of fraud or suppression.
→ Section 122 – penalties for certain offences.
→ Rule 142(1A) – pre-show-cause communication (Form DRC-01A).
Under this circular, the following hierarchy of officers has been assigned functions as proper officers for the above provisions:
→ Additional or Joint Commissioner of Central Tax
→ Deputy or Assistant Commissioner of Central Tax
→ Superintendent of Central Tax
To ensure balanced distribution of work, CBIC has prescribed monetary limits for different levels of officers when issuing show-cause notices and passing orders under Section 74A and Section 122.
Monetary limits for Section 74A cases (tax not paid or short paid, etc.)
→ Superintendent of Central Tax – up to Rs. 10 lakh (CGST) and up to Rs. 20 lakh (IGST); combined limit Rs. 20 lakh.
→ Deputy or Assistant Commissioner of Central Tax – above Rs. 10 lakh and up to Rs. 1 crore (CGST); above Rs. 20 lakh and up to Rs. 2 crore (IGST); combined limit Rs. 2 crore.
→ Additional or Joint Commissioner of Central Tax – above Rs. 1 crore (CGST) and above Rs. 2 crore (IGST); no upper limit for combined cases.
If a case involves both Central Tax and Integrated Tax, the combined tax amount, including cess, will decide which officer is competent. If the tax demand in later statements increases beyond an officer’s monetary limit, the case will be transferred to a higher officer by issuing a corrigendum. If the amount remains within the same limit, the same officer will continue. The limit will be determined based only on the tax amount, excluding any penalty. When a case originates from the audit commissionerate, the jurisdictional officer will handle further statements and ensure the case is answerable to the adjudicating authority mentioned in the original notice.
Clarification under Section 75(2)
Where a court, tribunal, or appellate authority concludes that fraud or suppression was not proved and the original notice under section 74(1) is unsustainable, the same adjudicating officer who issued that notice will now determine tax as if it were under section 73(1). This ensures continuity and avoids duplication of authority.
Monetary limits for Section 122 (penalty-only cases)
→ Superintendent of Central Tax – penalty up to Rs. 10 lakh (CGST) and Rs. 20 lakh (IGST); combined limit Rs. 20 lakh.
→ Deputy or Assistant Commissioner of Central Tax – penalty above Rs. 10 lakh and up to Rs. 1 crore (CGST); above Rs. 20 lakh and up to Rs. 2 crore (IGST); combined limit Rs. 2 crore.
→ Additional or Joint Commissioner of Central Tax – penalty above Rs. 1 crore (CGST) and above Rs. 2 crore (IGST); no upper limit for combined cases.
When penalties involve both Central and Integrated Tax, the combined penalty amount will determine the competent officer, regardless of the separate amounts under each head.
The CBIC has directed all field formations to issue trade notices for public awareness and to report any implementation difficulties to the Board. This circular provides long-awaited clarity on officer jurisdiction and monetary limits for show-cause notices and orders, promoting uniform practice and transparency in GST adjudication.
In short, Circular No. 254/11/2025-GST lays down a clear framework for assigning proper officers under Sections 74A, 75(2), and 122, ensuring that taxpayers and authorities alike follow a consistent and structured procedure for all future cases. Click here to read more. Explore
Disclaimer: This material and the information contained herein is intended for clients and other Chartered Accountants to provide updates and is not an exhaustive treatment of such subject. We are not, by means of this material, rendering any professional advice or services. It should not be relied upon as the sole basis for any decision which may affect you or your business.
