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Circular No. 254/11/2025-GST
F. No. CBIC-20010/80/2025-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes & Customs
GST Policy Wing
***
Room No. 16038
Kartavya Bhawan-I, New Delhi,
Dated 27
th
October, 2025
To,
The Principal Chief Commissioners/ Chief Commissioners (All)
The Principal Directors General / Directors General (All)
Madam/Sir,
Subject: Assigning proper officer under section 74A, section 75(2) and section 122
of the Central Goods and Services Tax Act, 2017 and the rules made thereunder–
reg.
Attention is invited to the Board’s circular No. 1/1/2017-GST dated 26
th
June, 2017,
through which the Board had assigned proper officers for provisions relating to registration and
composition levy under the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter
referred to as the “CGST Act”) and the rules made thereunder. Further, attention is also invited
to the Board's circular No. 3/3/2017-GST dated 5
th
July, 2017 and circular No. 31/05/2018-
GST dated 9
th
February, 2018 (as amended) regarding appointment of proper officers under
various provisions of the Central Goods and Services Tax Act, 2017 and Integrated Goods and
Services Tax Act, 2017 (13 of 2017) (hereinafter referred to as the “IGST Act”).
2. It is observed that no proper officer has been assigned in respect of the following
provisions of the CGST Act and the Central Goods and Services Tax Rules, 2017 (hereinafter
referred to as “CGST Rules”):
a) Section 74A of the CGST Act which shall be applicable for determination of tax not
paid or short paid or erroneously refunded or input tax credit availed or utilised for any
reason for the Financial Year 2024-25 onwards.
b) Section 75(2) of the CGST Act which provides where any Appellate Authority/
Appellate Tribunal/ Court concludes that the notice issued under section 74(1) is not
sustainable for the reason that the charges of fraud or any wilful-misstatement or
suppression of facts to evade tax has not been established against the person to whom
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the notice was issued, the proper officer shall determine the tax payable, deeming as if
the notice were issued under section 73(1) of CGST Act.
c) Section 122 of the CGST Act, 2017 which provides for the penalties in respect of certain
offences.
d) Rule 142(1A) of the CGST Rules 2017 which provides for issuance of a communication
in FORM GST DRC-01A before issuance of any show cause notice under section 73 or
section 74 or section 74 A of the CGST Act, 2017.
3. In exercise of the powers conferred by clause (91) of section 2 of the CGST Act read
with Section 20 of the IGST Act and subject to sub-sections (1) and (2) of section 5 of the
CGST Act, the Board hereby assigns the officers mentioned in Column (2) of the Table-I below,
to functions as the proper officers in relation to the two sections of the Central Goods and
Services Tax Act, 2017 or the rule, as given in the corresponding entry in Column (3) of the
said Table:-
Table-I
S.
No.
Designation of the officer Functions under Section of the Central Goods
and Services Tax Act, 2017 or the rules made
thereunder
(1) (2) (3)
1. a. Additional or Joint
Commissioner of Central Tax,
i. Sub-sections (1), (2), (3), (6), (7), (8), (9)
and (10) of Section 74 A.
ii. Section 122.
iii. Rule 142(1A) of the CGST Rules, 2017.
b. Deputy or Assistant
Commissioner of Central Tax,
c. Superintendent of Central
Tax
4. Whereas, for optimal distribution of work relating to the issuance of show cause notices
and orders under section 74A and section 122 of the CGST Act and also under the IGST Act,
monetary limits for different levels of officers of Central Tax need to be prescribed.
5.1 Therefore, in pursuance of clause (91) of section 2 of the CGST Act read with section
20 of the IGST Act and subject to sub-sections (1) and (2) of section 5 of the CGST Act, the
Board hereby assigns the officers mentioned in column (2) of the Table-II below, the functions
as the proper officers in relation to issuance of show cause notices and passing orders under
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section 74A of the CGST Act and section 20 of the IGST Act (read with section 74A of the
CGST Act), up to the monetary limits as mentioned in columns (3), (4) and (5) respectively of
the Table below:-
Table-II
Monetary limit for issuance of show cause notices and passing of orders under section
74A of CGST Act
Sl.
No.
Officer of
Central Tax
Monetary limit of
the amount of
Central Tax
(including cess) not
paid or short paid or
erroneously
refunded or input
tax credit of Central
Tax wrongly availed
or utilized for
issuance of show
cause notices and
passing of orders
under section 74A of
CGST Act
Monetary limit of the
amount of Integrated
tax (including cess) not
paid or short paid or
erroneously refunded
or input tax credit of
Integrated tax wrongly
availed or utilized for
issuance of show cause
notices and passing of
orders under section
74A of CGST Act
made applicable to
matters in relation to
integrated tax vide
section 20 of the IGST
Act
Monetary limit of the
amount of Central Tax
and Integrated tax
(including cess) not
paid or short paid or
erroneously refunded
or input tax credit of
Central Tax and
Integrated Tax
wrongly availed or
utilized for issuance of
show cause notices and
passing of orders
under section 74A of
CGST Act made
applicable to
Integrated tax vide
section 20 of the IGST
Act
(1) (2) (3) (4) (5)
1. Superintendent
of Central Tax
Not exceeding Rupees
10 lakh
Not exceeding Rupees
20 lakh
Not exceeding Rupees
20 lakh
2. Deputy or
Assistant
Commissioner
of Central Tax
Above Rupees 10 lakh
and not exceeding
Rupees 1 crore
Above Rupees 20 lakh
and not exceeding
Rupees 2 crore
Above Rupees 20 lakh
and not exceeding
Rupees 2 crore
3. Additional or
Joint
Commissioner
of Central Tax
Above Rupees 1 crore
without any limit
Above Rupees 2 crore
without any limit
Above Rupees 2 crore
without any limit
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5.2. It is clarified that where a show cause notice issued under section (1) of the section 73
or section 74 or section 74A of CGST Act, 2017 involves demand of both Central Tax and
Integrated Tax (including cess), the proper officer shall be determined on the basis of the
combined amount of Central Tax and Integrated Tax (including cess), mentioned in column (5)
of the Table-II above, irrespective of the individual amounts of Central Tax or Integrated Tax
(including cess) which may exceed the monetary limit prescribed in column (3) or column (4)
of the Table-II above.
5.3. The proper officer may serve a statement under sub-sections (3) and (4) of section 73
or section 74 or section 74A of the CGST Act, 2017 containing details of tax not paid or short
paid for a subsequent period after the show cause notice has been issued under sub-section (1)
of section 73 or section 74 or section 74A of the CGST Act, 2017 of the said section. In such
cases it is clarified that:
a) The proper officer shall be determined based on the highest amount of tax specified in
the show cause notice and statement across all tax periods.
b) Where the notice under sub-section (1) of section 73 or section 74 or section 74A of the
CGST Act, 2017 has been issued by a proper officer within his monetary limit but the
amount of tax demanded in the subsequent statement goes beyond his monetary limits
and which pertains to monetary limit corresponding to the competency of a higher-
ranked officer as per the prescribed monetary limits, the proper officer for issuing the
statement shall also be decided on the basis of the prescribed monetary limits in Table-
II above. The proper officer who has issued the earlier show cause notice and statement
(if any issued), shall issue a corrigendum and make the earlier show cause notice and
statement (if any issued) answerable to the proper officer competent to adjudicate the
statement with the higher amount of tax demanded.
c) In case there is no change in the monetary limit when the statement is issued, the
statement shall be issued by the same proper officer who has issued the show cause
notice in sub-section (1) of section 73 or section 74 or section 74A of CGST Act, and
he shall make the statement answerable to the same adjudication authority mentioned
in the show cause notice issued earlier.
d) The proper officer shall be determined based solely on the amount of tax demanded,
excluding penalties from the calculations.
e) For notices issued by officers of Audit Commissionerate of Central Tax, the proper
officer of the jurisdictional Central Tax Commissionerate of the noticee shall make the
statement to be issued under sub-sections (3) and (4) of section 73 or section 74 or
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section 74A of the CGST Act answerable to the adjudicating authority mentioned in
the earlier show cause notice issued under sub-section (1) of section 73 or section 74
or section 74A of the CGST Act, 2017.
6. Section 75(2) of CGST Act provides that where any Appellate Authority or Appellate
Tribunal or Court concludes that the notice issued under section 74(1) of CGST Act, is not
sustainable for the reason that the charges of fraud or any wilful-misstatement or suppression
of facts to evade tax has not been established against the person to whom the notice was issued,
the proper officer shall determine the tax payable by such person, deeming as if the notice were
issued under section 73(1) of CGST Act. It is clarified that the proper officer for this purpose
shall be the same officer who is the adjudicating authority for such show cause notice in respect
of which the Appellate Authority or Appellate Tribunal or Court has concluded that the notice
issued under section 74(1) of CGST Act is not sustainable.
7.1. Further, in pursuance of clause (91) of section 2 of the CGST Act read with section 20
of the IGST Act and subject to sub-sections (1) and (2) of section 5 of CGST Act, 2017, the
Board hereby assigns the officers mentioned in Column (2) of the Table-III below, the functions
as the proper officers in relation to issue of show cause notices and passing orders under section
122 of the CGST Act and section 20 of the IGST Act (read with section 122 of the CGST Act),
up to the monetary limits as mentioned in columns (3), (4) and (5) respectively of the Table
below:-
Table-III
Monetary limit for issuance of show cause notices and passing of orders under section
122 of CGST Act
Sl.
No.
Officer of
Central Tax
Monetary limit of
the amount of
penalty in relation
to the Central Tax
for issuance of show
cause notices
involving only
penalty and passing
of orders under
section 122 of CGST
Act
Monetary limit of the
amount of penalty in
relation to the
Integrated Tax for
issuance of show
cause notices
involving only
penalty and passing
of orders under
section 122 of CGST
Act made applicable
to matters in relation
to Integrated Tax
Monetary limit of the
amount of penalty in
relation to the Central
Tax and Integrated
Tax for issuance of
show cause notices
involving only penalty
and passing of orders
under section 122 of
CGST Act made
applicable to matters
in relation to
Integrated Tax vide
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vide section 20 of the
IGST Act
section 20 of the IGST
Act
(1) (2) (3) (4) (5)
1. Superintendent of
Central Tax
Not exceeding
Rupees 10 lakh
Not exceeding Rupees
20 lakh
Not exceeding Rupees
20 lakh
2. Deputy or
Assistant
Commissioner of
Central Tax
Above Rupees 10
lakh and not
exceeding Rupees 1
crore
Above Rupees 20 lakh
and not exceeding
Rupees 2 crore
Above Rupees 20 lakh
and not exceeding
Rupees 2 crore
3. Additional or Joint
Commissioner of
Central Tax
Above Rupees 1
crore without any
limit
Above Rupees 2 crore
without any limit
Above Rupees 2 crore
without any limit
7.2 It is also clarified that where a show cause notice is issued under section 122 of the
CGST Act, 2017 and involves demand of penalty in relation to both Central Tax and Integrated
Tax, the proper officer shall be determined on the basis of the combined amount of penalty in
relation to both Central Tax and Integrated Tax, mentioned in column (5) of the Table-III above,
irrespective of the individual amounts of penalty in relation to the Central Tax and Integrated
Tax¸ which may exceed the monetary limit prescribed in column (3) or column (4) of the Table-
III above.
8. It is requested that suitable trade notices may be issued to publicise the contents of this
circular.
9. Difficulty, if any, in implementation of the above instructions may please be brought to
the notice of the Board.
Yours faithfully,
(Gaurav Singh)
Commissioner (GST)
