monetary limit for issuance of SCN in GST

[Jinal S]

Circular no 31/05/2018-GST, provides monetary limit for issuance of SCN/ orders in GST.

The query is as follows:-

1. Can Deputy commissioner/ Assistant commissioner issue SCN / order levying Total Tax of Rs.10 cr (5cr CGST + 5 cr- SGST )

2. Can Joint commissioner issue SCN / order for Tax in dispute of Rs. 50 lakhs (25 lacs CGST & 25 lacs SGST) as lower limit for such officer is starting from <1cr.

Thanks in advance.

[KASTURI SETHI]

       Reply to query no.1  : NO

       Reply to query no.2  : YES. A   higher authority can use the power of lower authority but a  lower authority cannot use the power of higher authority. 

[Sadanand Bulbule]

Dear Sir

A  short and sweet answer.

AI Summary

Monetary limit for SCN issuance: senior officers may exercise lower-tier assessment powers; lower officers cannot exceed theirs. Circular 31/05/2018-GST prescribes monetary thresholds for SCN/order issuance by officer ranks. A Deputy/Assistant Commissioner may not issue an SCN/order exceeding their monetary limit, whereas a Joint Commissioner may issue an SCN/order within the lower-tier threshold because a higher officer can exercise the powers of a lower officer but a lower officer cannot exercise powers of a higher officer.