Background
The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 254/11/2025-GST dated 27th October 2025, to assign proper officers under key provisions of the Central Goods and Services Tax Act, 2017 (“CGST Act”). This move fills an important administrative gap by officially designating officers responsible for actions under the newly introduced Section 74A, Section 75(2), and Section 122, along with Rule 142(1A) of the CGST Rules, 2017.
Key Provisions Covered
| Section | Provision Covered |
| Section 74A – Determination of Tax from FY 2024–25 Onwards | This newly introduced section deals with determination of tax not paid, short paid, erroneously refunded, or wrongly availed/utilized input tax credit (ITC) for any reason from FY 2024–25 onwards. |
| Section 75(2) – Re-determination of Tax | When an Appellate Authority, Tribunal, or Court concludes that a notice under Section 74(1) is not sustainable (because fraud or wilful misstatement is not established), the same adjudicating officer will re-determine the tax as if the notice were issued under Section 73(1). |
| Section 122 – Penalty Provisions | Section 122 covers penalties for certain offences under the GST law, such as issuing invoices without supply, failure to pay tax, or availing fraudulent ITC. |
| Rule 142(1A) – Pre-SCN Communication | Mandates issuance of FORM GST DRC-01A before serving any show cause notice (SCN) under Sections 73, 74, or 74A. |
Assignment of Proper Officers
CBIC, in exercise of its powers under Section 2(91) of the CGST Act and Section 20 of the IGST Act, has designated the following officers as “proper officers” for the said provisions:
| Officer Designation | Relevant Provisions Assigned |
| Additional / Joint Commissioner of Central Tax | Sections 74A(1–3,6–10), 122, and Rule 142(1A) |
| Deputy / Assistant Commissioner of Central Tax | |
| Superintendent of Central Tax |
Monetary Limits for Show Cause Notices and Orders
To ensure efficient workload distribution, the circular prescribes monetary thresholds for each officer level for issuance of SCNs and passing orders under Sections 74A and 122.
| Under Section 74A (Tax Determination Cases) | |||
| Officer | Central Tax Limit | Integrated Tax Limit | Combined (CGST + IGST) |
| Superintendent | Up to Rs.10 lakh | Up to Rs.20 lakh | Up to Rs.20 lakh |
| Deputy / Assistant Commissioner | Rs.10 lakh – Rs.1 Crore | Rs.20 lakh – Rs.2 Crore | Rs.20 lakh – Rs.2 Crore |
| Additional / Joint Commissioner | Above Rs.1 Crore | Above Rs.2 Crore | Above Rs.2 Crore |
| Under Section 122 (Penalty-Only Cases) | |||
| Officer | Central Tax Penalty | Integrated Tax Penalty | Combined (CGST + IGST) |
| Superintendent | Up to Rs.10 lakh | Up to Rs.20 lakh | Up to Rs.20 lakh |
| Deputy / Assistant Commissioner | Rs.10 lakh – Rs.1 Crore | Rs.20 lakh – Rs.2 Crore | Rs.20 lakh – Rs.2 Crore |
| Additional / Joint Commissioner | Above Rs.1 Crore | Above Rs.2 Crore | Above Rs.2 Crore |
Note:
- Where both CGST and IGST are involved, the combined amount will determine the proper officer’s jurisdiction.
- Penalties are excluded when determining the officer for adjudication under Section 74A.
- If subsequent statements (for later periods) increase the total tax beyond the officer’s prescribed limit, the earlier SCN must be made answerable to a higher authority through a corrigendum.
- When an Audit Commissionerate issues an SCN, any follow-up statements will be made answerable to the jurisdictional adjudicating authority, not the audit officer.
Example:
If an Assistant Commissioner issues an SCN involving Rs.18 lakh CGST and Rs.25 lakh IGST (combined Rs.43 lakh), the matter exceeds Rs.20 lakh combined limit of the Superintendent, hence the Deputy/Assistant Commissioner will act as the proper officer.
Clarification for Section 75(2)
- Under Section 75(2), when a court or tribunal concludes that a fraud-based notice (u/s 74) was incorrectly issued, the matter must be re-determined as a non-fraud case (u/s 73).
- The circular clarifies that the same adjudicating officer who handled the original notice will also handle the fresh determination, maintaining continuity and preventing duplication or jurisdictional overlap.
Practical Implications
- Uniform Implementation: The circular eliminates ambiguity regarding the authority of officers under the new and existing provisions.
- Clarity in Adjudication: Monetary thresholds now guide officers in issuing SCNs and adjudicating orders, ensuring consistency.
- Alignment with FY 2024–25 onwards: Section 74A becomes operative from FY 2024–25, marking a clear shift in GST enforcement.
- Reduced Litigation: Clear designation of officers may prevent procedural disputes regarding jurisdiction.
Conclusion
This circular is a significant administrative step towards strengthening GST compliance and enforcement under the revised adjudication framework introduced by Finance (No. 2) Act, 2024. Businesses and practitioners should take note of the monetary limits, officer jurisdictions, and the applicability of Section 74A from FY 2024–25.
To download official circular, Click Here
“The site is for information purposes only and does not provide legal advice of any sort. Viewing this site, receipt of information contained on this site, or the transmission of information from or to this site does not constitute an attorney-client relationship. The information on this site is not intended to be a substitute for professional advice.”