On October 27, 2025, the Central Board of Indirect Taxes and Customs (CBIC) issued GST Circular No. 254/11/2025. This circular identifies which officers are responsible for handling specific adjudication tasks under the Central Goods and Services Tax Act/Rules, 2017. It fills earlier gaps in officer assignments related to tax assessments, penalties, and pre-notice communications. This move helps clarify who has jurisdiction and ensures smoother distribution of work.
Background and Why This Matters
Earlier circulars had assigned officers for various GST functions. However, some key areas were left out, causing confusion in handling cases. Such circulars include,-
- Circular No. 1/1/2017-GST (June 26, 2017) for registration and composition levy
- Circular No. 3/3/2017-GST (July 5, 2017)
- Circular No. 31/05/2018-GST (February 9, 2018, as amended)
The areas which remained unassigned include the following sections/rules:
- Section 74A: Tax not paid, short-paid, wrongly refunded, or wrongly claimed input tax credit (from FY 2024-25 onwards)
- Section 75(2): Redetermination of tax when fraud charges are dropped
- Section 122: Penalties for specific offenses
- Rule 142(1A): Pre-show cause notice communication (FORM GST DRC-01A)
This circular now assigns officers to these areas to ensure smooth and clear adjudication.
Who Are the Proper Officers Assigned Now?
Under Section 2(91) of the CGST Act and Section 20 of the IGST Act, CBIC has designated the following officers:
- Superintendents of Central Tax
- Deputy or Assistant Commissioners of Central Tax
- Additional or Joint Commissioners of Central Tax
These officers will handle functions under:
- Section 74A (sub-sections 1 to 3 and 6 to 10)
- Section 122
- Rule 142(1A)
Tax Demand Limits under Section 74A
The jurisdiction under respective officer rank depends on the amount of tax involved:
a) Superintendents of Central Tax:
- Central Tax up to ₹10 lakh
- Integrated Tax up to ₹20 lakh
- Combined amount up to ₹20 lakh
b) Deputy or Assistant Commissioners of Central Tax:
- Central Tax above ₹10 lakh and up to ₹1 crore
- Integrated Tax above ₹20 lakh and up to ₹2 crore
- Combined amount above ₹20 lakh and up to ₹2 crore
c) Additional or Joint Commissioners of Central Tax:
- Central Tax above ₹1 crore
- Integrated Tax above ₹2 crore
- Combined amount above ₹2 crore
If both central and integrated tax are involved, the officer is chosen based on the total combined amount.
Penalty Limits under Section 122
Similar jurisdiction limits apply for penalty cases, as under:
a) Superintendents of Central Tax:
- Central Tax penalty up to ₹10 lakh
- Integrated Tax penalty up to ₹20 lakh
- Combined penalty up to ₹20 lakh
b) Deputy or Assistant Commissioners of Central Tax:
- Central Tax penalty above ₹10 lakh and up to ₹1 crore
- Integrated Tax penalty above ₹20 lakh and up to ₹2 crore
- Combined penalty above ₹20 lakh and up to ₹2 crore
c) Additional or Joint Commissioners of Central Tax
- Central Tax penalty above ₹1 crore
- Integrated Tax penalty above ₹2 crore
- Combined penalty above ₹2 crore
Again, the jurisdiction is determined based on the total penalty amount.
Redetermination of Tax under Section 75(2)
If an appellate authority finds that a notice under Section 74(1) cannot be upheld due to lack of evidence for fraud or misstatement, the original adjudicating officer must reassess the tax. This reassessment is treated as if the notice was issued under Section 73(1).
Handling Follow-Up Statements
When additional statements are issued after the initial show cause notice:
- The officer is chosen based on the highest tax amount across all periods
- If the new demand exceeds the original officer’s limit, a corrigendum is issued to transfer the case to a higher officer
- If the demand stays within the limit, the same officer continues
- Penalties are not considered in this decision
- For notices from Audit Commissionerates, the jurisdictional Central Tax Commissionerate officer will handle follow-up statements
Conclusion
This circular is a major step in improving GST administration. By clearly assigning officers and setting monetary limits, it:
- Reduces confusion
- Ensures fair workload distribution
- Improves compliance and enforcement
It applies especially from Financial Year 2024-25 onwards and strengthens the CGST framework.
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