Monetary limit for issuance of SCN / adjudication of demand related to SGSTby Superintendent

[SRINIVAS KHODE]

Circular 31/05/2018 dated 09.02.2018 prescribes the monetary limit to issue SCN by Superintendent of Central Tax at CGST including Cess of Rs. 10 Lakh. However, the circular does not specify the monetary limit in respect of demand of SGST by CGST Officers. In view of this, what is the monetary limit for issuance of SCN of SGST demand by a Central Tax Superintendent? Can a Superintendent of Central Tax issue SCN for demand of SGST exceeding Rs. 10 Lakh?

[Asha Latha]

The monetary limit for both CGST and SGST is Rs. 10 lakhs, respectively. Consequently, the Superintendent of Central Tax cannot issue a show cause notice (SCN) for SGST demands exceeding this limit.

This position is based on Circular CCT’s Ref No. A(1)/121/2019, dated 04-11-2019, issued by the Telangana Commercial Tax Department. The circular deemed the adoption of certain CBIC circulars issued in 2017, 2018, and 2019, under the powers conferred by Section 168 of the Telangana GST Act, 2017.

As a result, the directions or instructions contained in CBIC circulars apply to the Telangana Commercial Taxes Department unless the Commissioner of State Tax, Telangana, issues a separate circular on the same subject.

AI Summary

Monetary limit for SCN issuance: Central Tax Superintendent cannot issue SGST demand notices beyond prescribed threshold.
The monetary ceiling for issuance of show cause notices and adjudication by a Superintendent of Central Tax applies equally to SGST; the Superintendent cannot issue SCNs for SGST demands exceeding the prescribed monetary threshold. This rule follows from a state circular that adopted CBIC circulars under the authority of Section 168, making those central instructions applicable to the State Commercial Taxes Department unless superseded by a separate state circular.