CBIC, GST Circular, Proper Officer, Adjudication, GST Compliance

The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 254/11/2025-GST on 27th October 2025, assigning and clarifying the designation of “Proper Officers” for specific provisions under the Central Goods and Services Tax (CGST) Act, 2017 and related rules.

The circular addresses the absence of designated officers for certain sections and now defines their roles and monetary jurisdiction limits to ensure clarity and uniformity in adjudication.

Key Highlights:

1. Sections Covered:

   • Section 74A: Determination of tax not paid, short paid, or erroneously refunded for FY 2024–25 onwards.

   • Section 75(2): Adjudication when higher authorities rule out fraud or wilful misstatement.

   • Section 122: Penalties for specified offences under GST.

   • Rule 142(1A): Issuance of pre-SCN communication in Form DRC-01A.

2. Designation of Proper Officers:

   • Superintendent, Deputy/Assistant Commissioner, and Additional/Joint Commissioner of Central Tax are designated as proper officers for the above sections.

3. Monetary Limits (for issuance of show cause notices & orders):

   • Superintendent: Up to Rs.10 lakh (Central Tax) / Rs.20 lakh (IGST).

   • Deputy/Assistant Commissioner: Rs.10 lakh–Rs.1 crore (Central Tax) / Rs.20 lakh–Rs.2 crore (IGST).

   • Additional/Joint Commissioner: Above Rs.1 crore (Central Tax) / Above Rs.2 crore (IGST).

4. Clarification:

   • Combined tax or penalty amount (Central + Integrated Tax) will determine officer jurisdiction.

   • Proper officer for adjudication under Section 75(2) will be the same officer who adjudicated the initial show cause notice.

   • For audit-originated notices, jurisdictional Commissionerates will handle adjudication.

5. Action Required:

   • Field formations must issue trade notices for public awareness.

   • Any implementation difficulties to be reported to the CBIC.

Source : https://taxinformation.cbic.gov.in/view-pdf/1003295/ENG/Circulars