The Central Board of Indirect Taxes & Customs (CBIC) issued Circular No. 254/11/2025-GST on 27 October 2025 to clarify the designation of “proper officers” responsible for adjudication under the CGST Act, 2017 — specifically for Sections 74A, 75(2), and 122. This clarification aims to end confusion over officer jurisdiction in issuing show-cause notices, determining tax liability, and imposing penalties. By defining the right authority, the CBIC seeks to ensure uniformity, faster resolution, and better accountability across all GST zones.
Key Highlights
- Defines a hierarchy of officers (Superintendent, Deputy/Assistant Commissioner, and Additional/Joint Commissioner of Central Tax) as the “proper officer” for adjudication under the specified sections, with their jurisdiction determined by monetary limits on the tax demand (combined CGST/IGST).
- Once a case is assigned, jurisdiction cannot be changed arbitrarily between officers.
- Ensures uniform enforcement procedures and prevents overlapping of cases.
- Promotes administrative accountability and procedural transparency in GST matters.
Why This Matters
- Helps taxpayers identify the correct officer handling their case.
- Avoids disputes over jurisdiction and invalid notices.
- Promotes timely adjudication and reduces procedural delays.
- Enhances trust and clarity in GST enforcement.
Conclusion
The CBIC Circular No. 254/11/2025-GST is an important procedural reform for India’s GST administration. By clearly defining the “proper officer” for adjudication, it enhances clarity, consistency, and accountability in tax proceedings. This step supports both ease of doing business and the credibility of the GST framework, ensuring that all actions are legally sound and transparently executed.
This circular makes it clear who can issue and decide GST notices under the law — ensuring that cases are handled by the right officer, following due process, and making the system more transparent and reliable.
FAQs
1. What is meant by “proper officer” under GST?
Ans: It refers to the authorised officer who can legally issue notices, assess tax, and impose penalties under the CGST Act.
2. Which GST sections are covered?
Ans: Sections 74A, 75(2), and 122 — covering recovery for fraud, unreported transactions, and penalties for offences.
3. Who has been defined as the proper officer?
Ans: The circular assigns the role to the Superintendent, Deputy/Assistant Commissioner, and Additional/Joint Commissioner of Central Tax, with specific monetary limits that determine which officer handles a case.
4. Why was this circular issued?
Ans: To eliminate confusion caused by overlapping powers and inconsistent interpretations among GST officers.
5. Does it change any tax or penalty rules?
Ans: No. It only clarifies who can act — not the tax or penalty itself.
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