The Central Board of Indirect Taxes and Customs (CBIC) has issued the new guidelines assigning proper officers for GST proceedings.
The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 254/11/2025-GST to streamline the allocation of responsibilities for issuing show cause notices, adjudication proceedings, and penalty orders under key provisions of the Central Goods and Services Tax (CGST) Act.
The circular clarifies the assignment of “proper officers” under Sections 74A, 75(2), and 122 of the CGST Act and the corresponding rules.
The move addresses operational gaps, as earlier notifications did not specify officers for these provisions, particularly after the introduction of Section 74A, which deals with determination of tax dues for FY 2024-25 onward where no fraud or suppression is alleged.
Key Highlights of the Circular
1. Assignment of Officers for Specific GST Functions
The circular assigns Superintendents, Assistant/Deputy Commissioners, and Additional/Joint Commissioners of Central Tax as proper officers for:
- Section 74A: Determination of unpaid/short-paid tax or wrong ITC claims (non-fraud cases).
- Section 75(2): Re-determination of tax when fraud charges in earlier notices are rejected by appellate authorities.
- Section 122: Imposition of penalties for specified GST offences.
- Rule 142(1A): Issuance of pre-SCN communication in Form GST DRC-01A.
Circular No. 254:11:2025-GST
2. Monetary Limits Prescribed for Show Cause Notices & Orders
The circular sets graded monetary jurisdiction, ensuring proportional allocation of cases:
| Officer Rank | Monetary Limit Under Section 74A (Central Tax) | Integrated Tax Limit | Combined Limit (CT + IGST) |
| Superintendent | Up to ₹10 lakh | Up to ₹20 lakh | Up to ₹20 lakh |
| Assistant/Deputy Commissioner | ₹10 lakh to ₹1 crore | ₹20 lakh to ₹2 crore | Up to ₹2 crore |
| Additional/Joint Commissioner | Above ₹1 crore | Above ₹2 crore | Above ₹2 crore |
This framework applies to issuance of SCNs as well as final adjudication orders.
Circular No. 254:11:2025-GST
3. Combined Calculation for Jurisdiction
Where a case involves both CGST and IGST, the combined tax amount will determine the competent officer—not the individual tax heads.
Circular No. 254:11:2025-GST
4. Re-determination of Tax under Section 75(2)
If appellate bodies drop charges of fraud or suppression in a notice originally issued under Section 74, the same adjudicating authority will recompute tax liability under Section 73 (non-fraud provision).
Circular No. 254:11:2025-GST
5. Penalty Proceedings under Section 122
Similar monetary thresholds are prescribed for penalty-only proceedings, with combined tax penalty amounts determining jurisdiction.
6. Directions to Field Formations
CBIC has instructed all Commissionerates to issue Trade Notices to disseminate the contents widely and report any implementation difficulties to the Board.
Impact & Industry Significance
This clarification is expected to improve uniformity in adjudication proceedings, reduce disputes over jurisdiction, expedite GST enforcement cases, particularly for FY 2024-25 onward and help taxpayers identify the correct authority for assessment and appeals.
Notification Details
Circular No. 254/11/2025-GST
Date: 27th October, 2025
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