Proper Officer under Sections 73 and 74 of the Central Goods and Services Tax Act, 2017 and under the Integrated Goods and Services Tax Act, 2017 - GST - Trade Notice No. 02/2018

GOVERNMENT OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE OFFICE OF THE CHIEF COMMISSIONER, GOODS AND SERVICES TAX CUSTOMS CRESCENS BUILDING, M.G ROAD, SHILLONG.793001 C. No. IV(16)02/CCO/TECH-I/GST/SH/2018/1121-49 Dated. Shillong the 14th February,2018 Trade Notice No. 02/2018 Subject: Proper Officer under Sections 73 and 74 of the Central Goods and Services Tax Act, 2017 and under the Integrated Goods and Services Tax Act, 2017-reg. The Central Board of Excise Customs [CBEC]-GST Policy Wing has issued a Circular No. 31/05/2018-GST dated 9th February, 2018 for the Trade and as well as all concerned regarding assigning of Proper Officer under Sections 73 and 74 of the Central Goods and Services Tax Act, 2017 and under the Integrated Goods and Services Tax Acts, 2017. 2. 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 there under. 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. 3. 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 SI. No. 4 of the Table on page number 3 of Circular No. 3/3/2017-GST dated July,2017, namely:- Sl. No. Designation of the officer Functions under Section of the Central Goods and Services Tax Act, 2017 or the rules made there under (1) (2) (3) 4. Superintendent of Central Tax viii (a). Sub-sections (1), (2), (3), (5), (6), (7), (9) and (10) of Section 74 4. 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. No. Designation of the officer Functions under Section of the Central Goods and Services Tax Act, 2017 or the rules made there under (1) (2) (3) 3. Deputy or Assistant Commissioner of Central Tax vi. Sub-sections (1), (2), (3), (5), (6), (7), (9) and (10) of Section 74 5. 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. 6. 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 Sl. No. Officer of central tax Monetary limit of the amount of central tax (including cess) not paid or short paid or erroneously refunded or input tax credit of central tax wrongly availed or utilized for issuance of show cause notices and passing of orders under sections 73 and 74 of CGST Act Monetary limit of the amount of integrated tax (including cess) not paid or short paid or erroneously refunded or input tax credit of integrated tax wrongly availed or utilized for issuance of show cause notices and passing of orders under sections 73 and 74 of CGST Act made applicable to matters in relation to integrated tax vide section 20 of the IGST Act Monetary limit of the amount of central tax and integrated tax (including cess) not paid or short paid or erroneously refunded or input tax credit of central tax and integrated tax wrongly availed or utilized for issuance of show cause notices and passing of orders under sections 73 and 74 of CGST Act made applicable to integrated tax vide section 20 of the IGST Act (1) (2) (3) (4) (5) 1. Superintendent of Central Tax Not exceeding ₹ 10 lakhs Not exceeding ₹ 20 lakhs exceeding Not ₹ 20 lakhs Deputy or Assistant Commissioner of Central Tax Above ₹ 10 lakhs and not exceeding ₹ 1 crore Above ₹ 20 lakhs and not exceeding ₹ 2 crores Above ₹ 20 lakhs and not exceeding ₹ 2 crores Additional or Joint Commissioner of Central Tax Above ₹ 1 crore without any limit Above ₹ 2 crores without any limit Above ₹ 2 crores without any limit 7. 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 notice is registered. In case there are more than one notices 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 notice from whom the highest demand of central tax and/or integrated tax (including cess) has been made falls. 8. Notwithstanding anything contained in Para 7 above, a show cause notice issued by DGGSTI in which the principal places of business of the notices fall in multiple Commissionerates and where the Central Tax and/or Integrated Tax (including cess) involved is more than ₹ 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. 9. In case show cause notices have been issued on similar issues to a notice (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). This Trade Notice is being issued so as to sensitize the trade and field formations about the contents of the aforesaid references and for complete details, the respective references may please be referred in the CBECs website wwmcbec.gov.in. All Commissioners are requested to bring the contents of the Trade Notice to the notice of all the officers working under their charge and the assessees falling under their respective jurisdiction. The Trade Industry Associations/Chambers of Commerce are requested to bring the contents of the Trade Notice to the notice of all their members. (W. L. Hangshing) Chief Commissioner