monetary limit for issuance of SCN

[Affirmservicesconsultancy Privatelimited]

As per Circular no 31/05/2018-GST, The monetary limit for issuance of SCN by the Superintendent of Central Tax is as follows:-

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 is - Not exceeding Rupees 10 lakhs

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 - Not exceeding Rupees 20 lakhs

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 -Not exceeding Rupees 20 lakhs.

In Circular no 31/05/2018-GST, No limit is mentioned for SGST

The query is as follows:-

1. If in an issue related to demand of central tax (CGST) amounting to Rs. 8 lacs and integrated tax (IGST) amounting to Rs.8 lacs and SGST amounting to Rs.8 lacs who is the proper office to issue SCN.

2. If in an issue related to demand of central tax (CGST) amounting to Rs. 0 lacs and integrated tax (IGST) amounting to Rs.0 lacs and SGST amounting to Rs.8 lacs who is the proper office to issue SCN.

Love to hear from you. Thank you

[Amit Agrawal]

Given answers below are from point of officers of CGST:

1. If in an issue related to demand of central tax (CGST) amounting to Rs. 8 lacs and integrated tax (IGST) amounting to Rs.8 lacs and SGST amounting to Rs.8 lacs who is the proper office to issue SCN.

Answer: The Superintendent of Central Tax & his superior officer/s (in light of sub-section (2) of section 5 of the CGST Act)

2. If in an issue related to demand of central tax (CGST) amounting to Rs. 0 lacs and integrated tax (IGST) amounting to Rs.0 lacs and SGST amounting to Rs.8 lacs who is the proper office to issue SCN.

Answer: Subject to notifications (if any) issued under Section 6 (1) of jurisdictional state GST law, proper officer/s as notified under CGST.

These are ex facie views of mine, the same should not be construed as professional advice / suggestion.

[Padmanathan KV]

The answer will depend upon which administrative jurisdiction the Tax Payer falls within. If it is Centre, then in Query 1 and 2, Superintendent can issue SCN in my opinion due to cross-empowerment.

If the Tax Payer falls within State Jurisdiction, then one need to see the particular Notification/circulars issued by State.

[KASTURI SETHI]

I support the views of both experts and also read Section 6(2) of CGST Act, 2017.

AI Summary

Monetary Limits for GST Show Cause Notices: Rs. 10 Lakhs for Central Tax, Rs. 20 Lakhs for Integrated Tax. The discussion focuses on the monetary limits for issuing Show Cause Notices (SCN) under the GST framework, as per Circular no 31/05/2018-GST. It specifies that the limit for central tax issues is up to Rs. 10 lakhs, while for integrated tax issues, it is up to Rs. 20 lakhs. Queries were raised about the proper authority to issue SCNs for different combinations of tax demands. Responses indicate that the Superintendent of Central Tax or relevant state authorities, depending on jurisdiction and notifications, are responsible for issuing SCNs. The discussion emphasizes jurisdictional nuances and cross-empowerment.