Circular No. 254/11/2025-GST, Dated 27-10-2025
1. Background
The Central Board of Indirect Taxes and Customs (CBIC) has issued a circular assigning proper officers to discharge functions under key provisions of the Central Goods and Services Tax (CGST) Act, 2017, and the CGST Rules, 2017.
The circular also extends its applicability to the Integrated Goods and Services Tax (IGST), ensuring uniform implementation and administrative consistency across the tax framework.
2. Legal Provisions Covered
The circular specifies the officer hierarchy and jurisdiction for exercising powers under the following provisions:
- Section 74A – Determination of tax not paid or short-paid for reasons other than fraud or suppression.
- Section 75(2) – Continuation of adjudication by the same officer in case of remand or rectification.
- Section 122 – Levy of penalties for specified offences.
- Rule 142(1A) – Communication of details of tax, interest, and penalty before issuance of a notice under Sections 73 or 74.
These designations are aimed at streamlining adjudication, ensuring accountability, and avoiding duplication of jurisdiction.
3. Continuity of Adjudication under Section 75(2)
The circular reaffirms that under Section 75(2) of the CGST Act:
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The same officer who conducted the original adjudication will continue to act as the proper officer for any subsequent proceedings related to that case.
This ensures procedural continuity and reduces administrative duplication.
4. Clarifications on Issuance of Subsequent Statements
To maintain procedural clarity under Sections 73, 74, and 74A, the circular provides the following guidance:
- Jurisdiction will be determined based on the tax amount demanded, excluding penalties.
- If the demand amount exceeds the monetary limit prescribed for an officer, the case must be transferred to a higher authority through a corrigendum.
- In cases where the original show cause notice was issued by an Audit Commissionerate, the jurisdictional officer of the noticee will issue subsequent statements.
- However, such cases will continue to remain answerable to the same adjudicating authority for consistency.
5. Objective and Impact
This circular aims to:
- Ensure clarity in officer jurisdiction under CGST and IGST laws,
- Promote efficiency and consistency in adjudication,
- Avoid jurisdictional overlap or procedural confusion, and
- Strengthen the overall compliance and enforcement framework under GST.
6. Conclusion
Through this circular, the CBIC has standardised the designation of proper officers for key functions under the CGST Act, 2017, the IGST Act, and the CGST Rules, 2017.
By prescribing clear monetary thresholds, jurisdictional criteria, and continuity norms, the Board has reinforced a more structured and transparent adjudication process across GST administrations.
