Circular No. 254/11/2025-GST: Designation of Appropriate Officers under Sections 74A, 75(2), and 122 of the CGST Act, 2017, including related provisions under the IGST Act and Rule 142(1A) of the CGST Rules, 2017.

Issued by: CBIC (GST Policy Wing), Ministry of Finance

Date: 27th October 2025

CBIC announces officer assignments for new GST provisions

The Central Board of Indirect Taxes and Customs recently issued Circular No. 254/11/2025-GST. This circular is dated 27th October 2025. It specifies the assignment of proper officers under important sections of the CGST Act. These sections include 74A, 75(2), and 122, as well as Rule 142(1A).

This circular is meant to make decisions faster. It focuses on tax short payments, incorrect ITC claims, and penalties. This applies to the financial year 2024-25 and later.

Key Points:

Applicable Provisions: This applies to Section 74A, Section 75(2), and Section 122 of the CGST Act, 2017.

Related Rules: The assignment also covers the corresponding provisions in the IGST Act and Rule 142(1A) of the CGST Rules, 2017.

Purpose of the Circular

• Assigning officers under: Tax can be recalculated.

1. Section 74A - Determination of tax not paid/short paid/ITC wrongly availed for FY 2024–25 onwards.
2. Section 75(2) - Redetermination of tax when a fraud-based SCN under Section 74(1) is converted into a normal SCN under Section 73(1).
3. Section 122 - Levy of penalties for specified offences.
4. Rule 142(1A) - Communication in Form DRC-01A before SCN issuance.

Applicability

• Applicable for the financial year 2024–25 onwards.

Officer Designations and Monetary Limits

1. The circular designates superintendents, deputy/assistant commissioners, and additional/joint commissioners as proper officers for issuing show-cause notices and passing orders.
2. The authorities set monetary limits based on Central, Integrated, and combined tax amounts. These limits range from ₹10 lakh to unlimited, depending on the officer's rank.

Designation of Proper Officers (Table I)

Additional/Joint Commissioner, Deputy/Assistant Commissioner, and Superintendent of Central Tax are designated as proper officers for:

• Sections 74A(1–3,6–10)
• Section 122
• Rule 142(1A)

Monetary Limits for Section 74A (Table II)

Key Explanations of New Provisions

• The proper officer determined based on the combined tax amount (Central + IGST).
• If the tax amount increases beyond the assigned limits later, the case must be transferred to a higher-ranked officer via a corrigendum.
• Penalties are not included when determining monetary limits.
• Audit Commissionerate notices to be answerable to jurisdictional adjudicating authorities.

Section 75(2) Explanation

If the appellate body finds that fraud or misstatement is not proven, the same adjudicating officer will reevaluate the tax under Section 73(1).

Monetary Limits for Section 122 Table III

Clarifications

• The proper officer determined the combined tax amount (Central + IGST).
• Penalty amounts are excluded while calculating limits.
• If a case exceeds the officer’s jurisdictional limit after revision, it must be transferred to a higher officer.
• For Audit Commissionerate cases, the jurisdictional authority remains responsible.
• In Section 75(2) cases, the same adjudicating officer will reassess tax when a fraud charge is dropped.

Implementation

CBIC has directed all commissionerates to issue trade notices to inform taxpayers and officers. The circular aims to promote transparency, uniformity, and accountability in GST adjudication processes.

Issued by:
 Gaurav Singh, Commissioner (GST)
 Date: 27 October 2025

Proper Officer Assignment circular