CBIC Circular: Assignment of Proper Officers and Monetary Limits for GST Actions
Title: CBIC’s Important Circular: Assignment of Proper Officers and Monetary Limits under Sections 74A, 75(2), and 122 of the CGST Act, 2017
Issue: To ensure administrative clarity, uniformity, and effective jurisdiction under the Goods and Services Tax (GST) Act, the Central Board of Indirect Taxes and Customs (CBIC) issued a circular officially assigning the roles of the “Proper Officer” and setting monetary limits for various categories of tax officials to perform functions under key sections of the CGST Act.
Facts:
- The GST law grants powers to different classes of officers (ranging from Superintendent to Principal Commissioner).
- Without clear assignment and monetary thresholds, there can be jurisdictional disputes, administrative chaos, and inconsistencies in enforcement actions.
- The CBIC needed to delegate specific powers under critical sections of the law (e.g., compounding of offenses, appeal reviews, and penalties).
Decision:
The CBIC issued a circular assigning the functions of the Proper Officer for Sections 74A, 75(2), and 122 of the CGST Act, 2017, defining the hierarchy of officers competent to act, based on the monetary amount of the disputed tax or penalty.
Key TakeDowns:
- Assignment of Proper Officer (Section 74A – Compounding of Offenses): The circular specifies which grade of officer (e.g., Commissioner, Joint Commissioner, etc.) is the competent authority to sanction the compounding of offenses (allowing a taxpayer to pay a compounding fee in lieu of prosecution). This authority is tied to the penalty amount involved.
- Review of Appeal Orders (Section 75(2)): The circular details the monetary thresholds that determine which superior officer (e.g., Commissioner or Principal Commissioner) is required to review or authorize the decision of an appellate authority. This ensures higher-value disputes receive oversight from senior officials.
- Imposing Penalty (Section 122): The circular assigns the monetary limits for different officers concerning the imposition of penalties for various contraventions of the Act (as listed under Section 122). This prevents lower-ranking officials from dealing with high-value penalty cases.
- Administrative Clarity and Uniformity: This directive ensures that taxpayers and officers across India face a uniform application of law and clear jurisdictional boundaries, minimizing disputes over the competency of the assessing or enforcing authority.