CBIC notifies Assignment of Proper Officers for GST Proceedings u/s 74A, 75(2) and 122 [Read Circular]

The notification was issued to address the absence of designated officers for specific provisions dealing with determination of tax, adjudication following appellate orders, and imposition of penalties.

The CBIC referred to earlier circulars issued in 2017 and 2018 that had assigned proper officers for provisions related to registration, composition levy, and adjudication under the CGST and IGST Acts.

However, it observed that officers had not yet been specifically assigned for proceedings under Section 74A (determination of tax not paid/short paid for FY 2024-25 onwards), Section 75(2) (determination of tax payable when fraud not established), and Section 122 (penalty for certain offences), as well as Rule 142(1A) concerning pre-SCN communications in Form GST DRC-01A.

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Assignment of Proper Officers

Exercising powers under clause (91) of Section 2 of the CGST Act read with Section 20 of the IGST Act, the Board has now designated the following officers as proper officers for the said provisions:

• Additional/Joint Commissioners of Central Tax
• Deputy/Assistant Commissioners of Central Tax
• Superintendents of Central Tax

These officers will handle functions related to Sections 74A, 122, and Rule 142(1A) of the CGST Rules, 2017.

Also read: Supreme Court to Decide if GLDC’s Activities Like Soil Conservation, Land Reclamation are Liable to Service Tax [Read Order]

Monetary Jurisdictions for Adjudication under Section 74A

The circular prescribes monetary limits for issuing SCNs and passing orders under Section 74A, both for Central Tax and Integrated Tax:

• Superintendent of Central Tax: Up to ₹10 lakh (Central Tax) / ₹20 lakh (IGST)
• Deputy/Assistant Commissioner: Above ₹10 lakh and up to ₹1 crore (Central Tax) / ₹2 crore (IGST)
• Additional/Joint Commissioner: Above ₹1 crore (Central Tax) / ₹2 crore (IGST) without limit

If both Central Tax and IGST are involved, the officer’s jurisdiction will be determined on the combined amount of tax and cess.

The circular also clarifies that in cases where a subsequent period’s statement under Sections 73(3), 74(3), or 74A(3)increases the tax demand beyond the earlier officer’s monetary limit, the case must be transferred to the competent higher officer through a corrigendum.

Law in Your Hands — GST, Explained & Up to Date! Click here

Determination under Section 75(2)

Under Section 75(2), when an appellate authority or court finds that allegations of fraud or suppression under Section 74(1) are not sustainable, the tax shall be re-determined as if the notice was issued under Section 73(1). The circular clarifies that the same adjudicating officer who handled the original proceedings will be the proper officer for re-determination.

Monetary Limits for Penalty Proceedings under Section 122

Similar to tax adjudication, the CBIC has specified officer-wise monetary limits for imposing penalties under Section 122:

• Superintendent of Central Tax: Up to ₹10 lakh (Central Tax) / ₹20 lakh (IGST)
• Deputy/Assistant Commissioner: Above ₹10 lakh and up to ₹1 crore (Central Tax) / ₹2 crore (IGST)
• Additional/Joint Commissioner: Above ₹1 crore (Central Tax) / ₹2 crore (IGST) without limit

Here too, if a case involves penalties under both CGST and IGST, jurisdiction will be decided on the aggregate penalty amount.

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