Circular No. 255/01/2026-GST, Dated 27-06-2026
The Central Board of Indirect Taxes and Customs (CBIC) has issued a circular clarifying the jurisdictional position where a taxpayer migrates from one GST jurisdiction to another due to a change in the principal place of business.
The clarification explains how ongoing, consequential and appellate proceedings are to be handled after such migration.
1. Validity of Proceedings Initiated by Erstwhile Authority
CBIC has clarified that any action or proceeding validly initiated by the erstwhile jurisdictional authority will continue to remain valid even after the taxpayer is transferred to another jurisdiction.
Thus, a taxpayer’s migration does not invalidate proceedings already initiated before the date of transfer.
2. No Fresh Proceedings by Erstwhile Authority After Transfer
After the taxpayer’s jurisdiction is transferred, the earlier jurisdictional authority cannot initiate any fresh proceedings against the taxpayer.
This means that once jurisdiction shifts, only the transferee authority will have the power to take subsequent action.
3. Pending Proceedings to Continue from Existing Stage
All pending proceedings must be continued by the transferee jurisdictional authority from the stage at which they stood on the date of migration.
This ensures continuity of proceedings without requiring the process to be restarted.
4. Consequential and Appellate Proceedings
CBIC has also clarified that consequential and appellate proceedings arising from earlier actions must also be handled by the transferee jurisdictional authority.
The transferee authority will be responsible for implementing, continuing and concluding such proceedings in accordance with law.
5. Past Actions Retain Validity
The circular makes it clear that actions already taken by the transferor authority before migration will retain their legal validity.
However, all actions after migration must be undertaken by the authority currently having jurisdiction over the taxpayer.
6. Objective of the Clarification
The clarification aims to:
- Remove ambiguity regarding jurisdiction after taxpayer migration;
- Ensure continuity of GST proceedings;
- Preserve the validity of actions already initiated;
- Prevent fresh action by authorities no longer having jurisdiction; and
- Provide clarity to both taxpayers and tax officers.
7. Key Takeaway
CBIC has clarified that GST proceedings validly initiated before the migration of a taxpayer to another jurisdiction will remain valid. However, after the transfer, the erstwhile authority cannot initiate fresh proceedings. All pending, consequential and appellate proceedings must be continued, implemented and concluded by the transferee jurisdictional authority from the stage at which they stood on the date of migration.
