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Circular No. 31/05/2018 - GST
F. No. 349/75/2017-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
GST Policy Wing
***
New Delhi, 9
th
February 2018
To,
The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/
Commissioners of Central Tax / Commissioners of Central Tax (Audit)/ Principal Director
General of Goods and Services Tax Investigation/ Director General of Systems
Madam/Sir,
Subject: Proper officer under sections 73 and 74 of the Central Goods and Services Tax
Act, 2017 and under the Integrated Goods and Services Tax Act, 2017–reg.
The Board, vide Circular No. 1/1/2017-GST dated 26
th
June, 2017, assigned proper
officers for provisions relating to registration and composition levy under the Central Goods
and Services Tax Act, 2017 (hereinafter referred to as the “CGST Act”) and the rules made
thereunder. Further, vide Circular No. 3/3/2017 - GST dated 5
th
July, 2017, the proper
officers for provisions other than registration and composition under the CGST Act were
assigned. In the latter Circular, the Deputy or Assistant Commissioner of Central Tax was
assigned as the proper officer under sub-sections (1), (2), (3), (5), (6), (7), (9) and (10) of
section 74 while the Superintendent of Central Tax was assigned as the proper officer under
sub-sections (1), (2), (3), (5), (6), (7), (9) and (10) of section 73 of the CGST Act.
2. It has now been decided by the Board that Superintendents of Central Tax shall also
be empowered to issue show cause notices and orders under section 74 of the CGST Act.
Accordingly, the following entry is hereby being added to the item at Sl. No. 4 of the Table
on page number 3 of Circular No. 3/3/2017-GST dated 5
th
July, 2017, namely:-
Sl.
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)
4. Superintendent of
Central Tax
viii(a). Sub-sections (1), (2), (3), (5), (6), (7), (9) and (10) of
Section 74
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3. Further, in light of sub-section (2) of section 5 of the CGST Act, whereby an officer
of central tax may exercise the powers and discharge the duties conferred or imposed under
the CGST Act on any other officer of central tax who is subordinate to him, the following
entry is hereby removed from the Table on page number 2 of Circular No. 3/3/2017-GST
dated 5
th
July, 2017:-
Sl.
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)
3. Deputy or Assistant
Commissioner of Central Tax
vi. Sub-sections (1), (2), (3), (5), (6), (7), (9) and (10)
of Section 74
4. In other words, all officers up to the rank of Additional/Joint Commissioner of Central
Tax are assigned as the proper officer for issuance of show cause notices and orders under sub-
sections (1), (2), (3), (5), (6), (7), (9) and (10) of sections 73 and 74 of the CGST Act. Further,
they are so assigned under the Integrated Goods and Services Tax Act, 2017 (hereinafter
referred to as the “IGST Act”) as well, as per section 3 read with section 20 of the said Act.
5. Whereas, for optimal distribution of work relating to the issuance of show cause notices
and orders under sections 73 and 74 of the CGST Act and also under the IGST Act, monetary
limits for different levels of officers of central tax need to be prescribed. Therefore, in
pursuance of clause (91) of section 2 of the CGST Act read with section 20 of the IGST Act,
the Board hereby assigns the officers mentioned in Column (2) of the Table below, the
functions as the proper officers in relation to issue of show cause notices and orders under
sections 73 and 74 of the CGST Act and section 20 of the IGST Act (read with sections 73
and 74 of the CGST Act), up to the monetary limits as mentioned in columns (3), (4) and (5)
respectively of the Table below:-
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Table
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
sections 73 and 74
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
sections 73 and 74 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 sections 73
and 74 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 lakhs
Not exceeding
Rupees 20 lakhs
Not exceeding
Rupees 20 lakhs
2.
Deputy or
Assistant
Commissioner
of Central Tax
Above Rupees 10
lakhs and not
exceeding Rupees 1
crore
Above Rupees 20
lakhs and not
exceeding Rupees 2
crores
Above Rupees 20
lakhs and not
exceeding Rupees 2
crores
3.
Additional or
Joint
Commissioner
of Central Tax
Above Rupees 1
crore without any
limit
Above Rupees 2
crores without any
limit
Above Rupees 2
crores without any
limit
6. The central tax officers of Audit Commissionerates and Directorate General of Goods
and Services Tax Intelligence (hereinafter referred to as “DGGSTI”) shall exercise the
powers only to issue show cause notices. A show cause notice issued by them shall be
adjudicated by the competent central tax officer of the Executive Commissionerate in whose
jurisdiction the noticee is registered. In case there are more than one noticees mentioned in
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the show cause notice having their principal places of business falling in multiple
Commissionerates, the show cause notice shall be adjudicated by the competent central tax
officer in whose jurisdiction, the principal place of business of the noticee from whom the
highest demand of central tax and/or integrated tax (including cess) has been made falls.
7. Notwithstanding anything contained in para 6 above, a show cause notice issued by
DGGSTI in which the principal places of business of the noticees fall in multiple
Commissionerates and where the central tax and/or integrated tax (including cess) involved is
more than Rs. 5 crores shall be adjudicated by an officer of the rank of Additional
Director/Additional Commissioner (as assigned by the Board), who shall not be on the
strength of DGGSTI and working there at the time of adjudication. Cases of similar nature
may also be assigned to such an officer.
8. In case show cause notices have been issued on similar issues to a noticee(s) and
made answerable to different levels of adjudicating authorities within a Commissionerate,
such show cause notices should be adjudicated by the adjudicating authority competent to
decide the case involving the highest amount of central tax and/or integrated tax (including
cess).
9. It is requested that suitable trade notices may be issued to publicize the contents of
this circular.
10. Difficulty, if any, in implementation of the above instructions may please be brought
to the notice of the Board. Hindi version would follow.
(Upender Gupta)
Commissioner (GST)
