TaxTMI 
TaxTMI 
TaxTMI 
CBIC has issued a Circular No. 254/11/2025-GST dated 27.10.2025 clarifying on 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 and monetary limits:
- Proper Officer
- Presently no proper officers are assigned in respect of following section of the CGST Act, 2017:
Section / Rule | 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. | |
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 the notice was issued, the proper officer shall determine the tax payable, deeming as if the notice were issued under section 73(1) | |
Penalties in respect of certain offences | |
Issuance of a communication in FORM GST DRC-01A before issuance of any show cause notice under section 73 or section 74 or section 74A of the CGST Act, 2017. |
- Thus, the Circular designates Superintendents, Deputy/Assistant Commissioners, and Additional/Joint Commissioners of Central Tax to issue show cause notices and pass orders under these provisions.
- Under Section 75(2), the same officer handling the original adjudication will continue as the proper officer.
- Following functions of proper officers have been assigned:
Designation of the officer | Functions under Section of the CGST Act, 2017 / CGST Rules, 2017 |
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- Monetary limits have also been prescribed for to be followed for each adjudicating level to issue notices and pass orders under section 74A and under section 122 of the CGST Act, 2017
- Statement for subsequent period
- The procedure for issuing subsequent statements under section 73 (3, 4),74 (3, 4) and 74A has also been clarified.
- Such statement may be served by proper officer containing details of tax not paid or short paid for a subsequent period (following the original show cause notice), i.e., after the SCN has been issued under section 73, 74 or 74A, as the case may be.
- 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.
- Where SCN 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 new monetary limits.
- 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.
- 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, he shall make the statement answerable to the same adjudication authority mentioned in the show cause notice issued earlier.
- The proper officer shall be determined based solely on the amount of tax demanded, excluding penalties from the calculations.
- 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 section 73 (2, 3) or 74(2, 3) or section 74A of the CGST Act answerable to the adjudicating authority mentioned in the earlier show cause notice issued under section 73(1) or section 74 or section 74A of the CGST Act, 2017.
- In terms of section 75(2) of the CGST Act, 2017, 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. In such cases, proper officers 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.
- Monetary Limits
- CBIC has provided for the following monetary limits for adjudication under section 74A and 122 of the CGST Act, 2017 for various levels of adjudication.
- Monetary limit for issuance of SCN and passing orders under section 74A:
Officer | Limit for Central Tax (including cess) for SCN / Orders u/s 74A CGST Act | Limit for IGST (including cess) for SCN / Orders u/s 74A CGST Act read with section 20 of IGST Act | Limit for CGST and IGST (including cess) for SCN’s / Orders u/s 74A of CGST Act read with section 20 of IGST Act
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Superintendent of Central Tax | Not exceeding Rupees 10 lakh | Not exceeding Rupees 20 lakh | Not exceeding Rupees 20 lakh |
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 |
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 |
- Where show cause notice 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), irrespective of the individual amounts of Central Tax or Integrated Tax (including cess) which may exceed the respective monetary limit prescribed.
- Monetary limit for issuance of SCN’s and passing of orders under section 122 of the CGST Act, 2017
Officer | Limit for Central Tax (including cess) for SCN / Orders u/s 122 CGST Act | Limit for IGST (including cess) for SCN / Orders u/s 122 CGST Act read with section 20 of IGST Act | Limit for CGST and IGST (including cess) for SCN’s / Orders u/s 122 of CGST Act read with section 20 of IGST Act |
Superintendent of Central Tax | Not exceeding Rupees 10 lakh | Not exceeding Rupees 20 lakh | Not exceeding Rupees 20 lakh |
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 |
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 |
- 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 respective monetary limit prescribed.