CBIC issues Clarification on GST Jurisdiction after Migration/Transfer of Taxable Persons [Read Notification]

The Central Board of Indirect Taxes and Customs ( CBIC ) has issued a clarification regarding the exercise of jurisdiction under the Goods and Services Tax ( GST ) Act in cases where a registered taxpayer migrates or transfers its principal place of business from one jurisdiction to another.

The Circular clarifies that actions validly initiated by the original jurisdictional authority before the transfer will continue to remain legally valid, while all subsequent proceedings must be undertaken by the new jurisdictional authority after the transfer.

The clarification has been issued through Circular No. 255/01/2026-GST dated June 25, 2026 after receiving representations from field formations seeking guidance on jurisdictional issues arising after taxpayers shift their principal place of business.

CBIC clarified that every action validly undertaken by the transferor jurisdictional authority including investigation, audit, issuance of show cause notices, adjudication orders, review orders, filing of appeals, appellate proceedings or any other proceedings under the CGST Act and Rules shall remain legally valid even after the taxpayer migrates to another jurisdiction. Such proceedings are not rendered invalid merely because the taxpayer subsequently changes the principal place of business or falls under another jurisdiction.

At the same time, the Circular makes it clear that once the migration or transfer takes effect, all future stages of the proceedings must be handled exclusively by the transferee jurisdictional authority.

The new jurisdictional officer is required to implement, enforce and act upon the proceedings already initiated by the previous jurisdictional authority and continue the matter from the stage at which it stood on the date of migration. The earlier jurisdictional officer cannot continue exercising statutory powers after losing jurisdiction over the taxpayer.

The Board further clarified that where any fresh issue comes to the notice of the transferor jurisdictional authority after the migration of the taxpayer, the officer shall not initiate fresh proceedings. Instead, such information must be communicated to the transferee jurisdictional authority, which alone will be competent to initiate any further action under the CGST Act.

The Circular provides that where proceedings initiated by the transferor authority remain pending at the time of migration, the transferee jurisdictional authority shall assume control of the matter and complete the proceedings.

The transferee authority will also be responsible for all consequential actions, including implementation of earlier orders, defending or conducting proceedings before appellate authorities or the GST Appellate Tribunal, filing appeals wherever required, and taking all subsequent statutory actions arising out of the original proceedings.

Accordingly, the Board has clarified three key principles:

1. All proceedings validly initiated by the transferor jurisdictional authority before migration shall continue to remain valid.
2. After migration, the transferor authority shall not initiate any fresh proceedings against the taxpayer.
3. The transferee jurisdictional authority shall be the competent authority to continue pending proceedings, implement earlier actions, conduct appellate litigation and undertake all consequential proceedings under the CGST Act

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