Circular No. 31/05/2018-GST [C10-145]

The Board, vide Circular No. 1/1/2017-GST dated 26th June, 2017, assigned proper officers for provisions relating to registration and composition levy under the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the “CGST Act”) and the rules made thereunder. Further, vide Circular No. 3/3/2017 - GST dated 5th July, 2017, the proper officers for provisions other than registration and composition under the CGST Act were assigned. In the latter Circular, the Deputy or Assistant Commissioner of Central Tax was assigned as the proper officer under sub-sections (1), (2), (3), (5), (6), (7), (9) and (10) of section 74 while the Superintendent of Central Tax was assigned as the proper officer under sub-sections (1), (2), (3), (5), (6), (7), (9) and (10) of section 73 of the CGST Act.

2. It has now been decided by the Board that Superintendents of Central Tax shall also be empowered to issue show cause notices and orders under section 74 of the CGST Act. Accordingly, the following entry is hereby being added to the item at Sl. No. 4 of the Table on page number 3 of Circular No. 3/3/2017-GST dated 5th July, 2017, namely:-

Sl. Designation of the Functions under Section of the Central Goods and No. officer Services Tax Act, 2017 or the rules made thereunder (1) (2) (3)

4. Superintendent of viii(a). Sub-sections (1), (2), (3), (5), (6), (7), (9) and (10) of Central Tax Section 74

3. Further, in light of sub-section (2) of section 5 of the CGST Act, whereby an officer of central tax may exercise the powers and discharge the duties conferred or imposed under the CGST Act on any other officer of central tax who is subordinate to him, the following entry is hereby removed from the Table on page number 2 of Circular No. 3/3/2017-GST dated 5th July, 2017:-

Sl. Designation of the officer Functions under Section of the Central Goods and No. Services Tax Act, 2017 or the rules made thereunder

(1) (2) (3)

3. Deputy or Assistant vi. Sub-sections (1), (2), (3), (5), (6), (7), (9) and (10) Commissioner of Central Tax of Section 74

4. In other words, all officers up to the rank of Additional/Joint Commissioner of Central Tax are assigned as the proper officer for issuance of show cause notices and orders under sub- sections (1), (2), (3), (5), (6), (7), (9) and (10) of sections 73 and 74 of the CGST Act. Further, they are so assigned under the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as the “IGST Act”) as well, as per section 3 read with section 20 of the said Act.

5. Whereas, for optimal distribution of work relating to the issuance of show cause notices and orders under sections 73 and 74 of the CGST Act and also under the IGST Act, monetary limits for different levels of officers of central tax need to be prescribed. Therefore, in pursuance of clause (91) of section 2 of the CGST Act read with section 20 of the IGST Act, the Board hereby assigns the officers mentioned in Column (2) of the Table below, the functions as the proper officers in relation to issue of show cause notices and orders under sections 73 and 74 of the CGST Act and section 20 of the IGST Act (read with sections 73 and 74 of the CGST Act), up to the monetary limits as mentioned in columns (3), (4) and (5) respectively of the Table below:-

Table

Monetary limit of Monetary limit of the amount of the amount of integrated tax central tax and Monetary limit of (including cess) not integrated tax the amount of paid or short paid or (including cess) not central tax erroneously paid or short paid or (including cess) not refunded or input erroneously paid or short paid tax credit of refunded or input or erroneously integrated tax tax credit of central refunded or input Sl. wrongly availed or tax and integrated Officer of tax credit of utilized for issuance tax wrongly availed No. Central Tax central tax wrongly of show cause or utilized for availed or utilized notices and passing issuance of show for issuance of of orders under cause notices and show cause notices sections 73 and 74 of passing of orders and passing of CGST Act made under sections 73 orders under applicable to and 74 of CGST Act sections 73 and 74 matters in relation made applicable to of CGST Act to integrated tax integrated tax vide vide section 20 of the section 20 of the IGST Act IGST Act

(1) (2) (3) (4) (5)

Superintendent Not exceeding Not exceeding Not exceeding 1. of Central Tax Rupees 10 lakhs Rupees 20 lakhs Rupees 20 lakhs

Deputy or Above Rupees 10 Above Rupees 20 Above Rupees 20 Assistant lakhs and not lakhs and not lakhs and not 2. Commissioner exceeding Rupees 1 exceeding Rupees 2 exceeding Rupees 2 of Central Tax crore crores crores

Additional or Above Rupees 2 Above Rupees 1 Above Rupees 2 Joint crores without any

3. crore without any crores without any Commissioner limit limit limit of Central Tax

6. The central tax officers of Audit Commissionerates and Directorate General of Goods and Services Tax Intelligence (hereinafter referred to as “DGGSTI”) shall exercise the powers only to issue show cause notices. A show cause notice issued by them shall be adjudicated by the competent central tax officer of the Executive Commissionerate in whose jurisdiction the noticee is registered. In case there are more than one noticees mentioned in

the show cause notice having their principal places of business falling in multiple Commissionerates, the show cause notice shall be adjudicated by the competent central tax officer in whose jurisdiction, the principal place of business of the noticee from whom the highest demand of central tax and/or integrated tax (including cess) has been made falls.

7. Notwithstanding anything contained in para 6 above, a show cause notice issued by DGGSTI in which the principal places of business of the noticees fall in multiple Commissionerates and where the central tax and/or integrated tax (including cess) involved is more than Rs. 5 crores shall be adjudicated by an officer of the rank of Additional Director/Additional Commissioner (as assigned by the Board), who shall not be on the strength of DGGSTI and working there at the time of adjudication. Cases of similar nature may also be assigned to such an officer.

8. In case show cause notices have been issued on similar issues to a noticee(s) and made answerable to different levels of adjudicating authorities within a Commissionerate, such show cause notices should be adjudicated by the adjudicating authority competent to decide the case involving the highest amount of central tax and/or integrated tax (including cess).

9. It is requested that suitable trade notices may be issued to publicize the contents of this circular.

10. Difficulty, if any, in implementation of the above instructions may please be brought to the notice of the Board. Hindi version would follow.