CBIC assigned Proper Officers & Monetary Limits under Sections 74A, 75(2) & 122 of the CGST Act, 2017 vide Circular No. 254/11/2025-GST issued Dated October 27, 2025

The Central Board of Indirect Taxes & Customs (CBIC) has issued an important clarification assigning proper officers and prescribing monetary limits for issuance of show cause notices (SCNs), adjudication, and imposition of penalties under Sections 74A, 75(2), and 122 of the CGST Act, 2017, as well as Rule 142(1A) of the CGST Rules.

Key Highlights:

Section 74A – Assigns officers for determination of tax not paid, short paid, or wrongly availed ITC for FY 2024–25 onwards.
Section 75(2) – Specifies that where higher appellate forums find no fraud or suppression, the same adjudicating officer shall redetermine tax as if the notice were issued under Section 73 (non-fraud cases).
Section 122 – Clarifies officer jurisdiction for penalty proceedings.
Rule 142(1A) – Mandates pre-SCN communication in FORM GST DRC-01A before issuing notices under Sections 73, 74, or 74A.

Proper Officer Assignment:

CBIC has designated #Superintendents, #Deputy/ #Assistant #Commissioners, and #Additional/ #Joint Commissioners of Central Tax as proper officers for these functions.
To ensure uniformity, monetary limit have been prescribed for each cadre —
Superintendents will handle cases up to ₹10 lakh (₹20 lakh for IGST),
Deputy/Assistant Commissioners up to ₹1 crore (₹2 crore for IGST), and
Additional/Joint Commissioners will handle all cases above these thresholds.

Where a case involves both Central and Integrated Tax, the combined amount determines the proper officer.

Additional Clarifications:

Where further statements are issued under Sections 73(3)/(4), 74(3)/(4), or 74A(3)/(4), the officer’s jurisdiction will depend on the highest tax amount involved.
If the revised demand exceeds an officer’s limit, the case must be transferred to the next higher authority through a corrigendum.
For Audit Commissionerate notices, follow-up statements and adjudication will rest with the jurisdictional officer.
For Penalty-only cases under Section 122, similar monetary thresholds apply.

Significance:

This circular brings long-awaited clarity on the distribution of powers for adjudication under newly introduced Section 74A, aligns procedural consistency with Section 75(2), and ensures proportional accountability for penalty imposition under Section 122.
A major step toward administrative transparency, structured adjudication, and ease of compliance under GST!

For More :- Circular-No-254-11-2025-cgst-28102025