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.

Circular No.: 31/05/2018-GST
Date of Circular: 9th February 2018
Relevant Sections and Rules:

• Central GST Act, 2017:
  • Section 73: Determination of tax not paid or short paid (non-fraud)
  • Section 74: Determination of tax not paid or short paid (fraud)
  • Section 5(2): Powers of higher officer over subordinate officers
  • Section 2(91): Definition of Proper Officer
• Integrated GST Act, 2017:
  • Section 20 read with CGST Sections 73 & 74

Summary of Circular:

This circular assigns and clarifies the designation of proper officers for issuing Show Cause Notices (SCNs) and passing orders under Sections 73 and 74 of CGST and IGST Acts and prescribes monetary jurisdiction limits for each officer rank.

1. Proper Officers – Updates to Circular 3/3/2017-GST:
   • Now, Superintendents of Central Tax are empowered to issue SCNs and orders under Section 74, in addition to Section 73.
   • The earlier entry assigning these powers to Deputy/Assistant Commissioners under Section 74 is deleted (since powers flow down under Section 5(2)).
2. Revised Designation and Monetary Limits for Adjudication:

1. Role of Audit and DGGSTI:
   • Audit Commissionerates and DGGSTI may only issue SCNs, not adjudicate.
   • SCNs must be adjudicated by the Executive Commissionerate where the taxpayer is registered.
   • If SCNs involve multiple taxpayers from multiple Commissionerates, adjudication lies with the officer from the location with the highest tax demand.
2. Special Provision for Large Cases:
   • SCNs issued by DGGSTI involving tax > ₹5 crore and multiple jurisdictions will be adjudicated by an Additional Director/Commissioner (not part of DGGSTI during adjudication).
3. Consolidation of Related SCNs:
   • If similar SCNs are issued to a taxpayer involving different adjudicating levels, the case must be decided by the authority competent for the highest amount involved.
4. Implementation and Public Communication:
   • Field officers are instructed to issue trade notices to ensure uniform understanding.

Source: Circular No.: 31/05/2018-GST