SECTION 5, READ WITH SECTIONS 2(91), 73 & 74, OF THE CENTRAL GOODS AND

SERVICES TAX ACT, 2017 AND SECTIONS 3 & 20 OF THE INTEGRATED GOODS AND
SERVICES TAX ACT, 2017 - OFFICERS UNDER THIS ACT - NOTIFIED PROPER OFFICER
- PROPER OFFICER UNDER SECTIONS 73 AND 74 - AMENDMENT IN CIRCULAR
NO.3/3/2017-GST, DATED 5-7-2017

CIRCULAR NO.31/05/2018-GST, DATED 9-2-2018

The Board, vide Circular No. 1/1/2017-GST dated 26th June, 2017, assigned proper officers for
provisions relating to registration and composition levy under the Central Goods and Services Tax Act,
2017 (hereinafter referred to as the "CGST Act") and the rules made thereunder. Further, vide Circular
No. 3/3/2017 - GST dated 5th July, 2017, the proper officers for provisions other than registration and
composition under the CGST Act were assigned. In the latter Circular, the Deputy or Assistant
Commissioner of Central Tax was assigned as the proper officer under sub-sections (1), (2), (3), (5),
(6), (7), (9) and (10) of section 74 while the Superintendent of Central Tax was assigned as the proper
officer under sub-sections (1), (2), (3), (5), (6), (7), (9) and (10) of section 73 of the CGST Act.
2. It has now been decided by the Board that Superintendents of Central Tax shall also be empowered
to issue show cause notices and orders under section 74 of the CGST Act. Accordingly, the following
entry is hereby being added to the item at Sl. No. 4 of the Table on page number 3 of Circular No.
3/3/2017-GST dated 5th July, 2017, namely:—
Sl. Designation of the Functions under Section of the Central Goods and Services
No. officer Tax Act, 2017 or the rules made thereunder
(1) (2) (3)
4. Superintendent of (viii)(a). Sub-sections (1), (2), (3), (5), (6), (7), (9) and (10) of
Central Tax Section 74
3. Further, in light of sub-section (2) of section 5 of the CGST Act, whereby an officer of central tax
may exercise the powers and discharge the duties conferred or imposed under the CGST Act on any
other officer of central tax who is subordinate to him, the following entry is hereby removed from the
Table on page number 2 of Circular No. 3/3/2017-GST dated 5th July, 2017:-
Sl. Designation of the officer Functions under Section of the Central Goods and
No. Services Tax Act, 2017 or the rules made thereunder
(1) (2) (3)
3. Deputy or Assistant vi. Sub-sections (1), (2), (3), (5), (6), (7), (9) and (10)
Commissioner of Central Tax of Section 74
4. In other words, all officers up to the rank of Additional/Joint Commissioner of Central Tax are
assigned as the proper officer for issuance of show cause notices and orders under sub sections (1), (2),
(3), (5), (6), (7), (9) and (10) of sections 73 and 74 of the CGST Act. Further, they are so assigned
under the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as the "IGST Act") as
well, as per section 3 read with section 20 of the said Act.
5. Whereas, for optimal distribution of work relating to the issuance of show cause notices and orders
under sections 73 and 74 of the CGST Act and also under the IGST Act, monetary limits for different
levels of officers of central tax need to be prescribed. Therefore, in pursuance of clause (91) of section
2 of the CGST Act read with section 20 of the IGST Act, the Board hereby assigns the officers
mentioned in Column (2) of the Table below, the functions as the proper officers in relation to issue of
show cause notices and orders under sections 73 and 74 of the CGST Act and section 20 of the IGST
Act (read with sections 73 and 74 of the CGST Act), up to the monetary limits as mentioned in
columns (3), (4) and (5) respectively of the Table below:-
 Table
Sl. Officer of Central Monetary limit of the Monetary limit of the Monetary limit of the
No. Tax amount of central tax amount of integrated amount of central tax
(including cess) not tax (including cess) and integrated tax
paid or short paid or not paid or short paid (including cess) not
erroneously refunded or erroneously paid or short paid or
or input tax credit of refunded or input tax erroneously refunded
central tax wrongly credit of integrated tax or input tax credit of
availed or utilized for wrongly availed or central tax and
issuance of show cause utilized for issuance of integrated tax wrongly
notices and passing of show cause notices availed or utilized for
orders under sections and passing of orders issuance of show cause
73 and 74 of CGST Act under sections 73 and notices and passing of
74 of CGST Act made orders under sections
applicable to matters 73 and 74 of CGST Act
in relation to made applicable to
integrated tax vide integrated tax vide
section 20 of the IGST section 20 of the IGST
Act Act
(1) (2) (3) (4) (5)
1. Superintendent of Not exceeding Rupees Not exceeding Rupees Not exceeding Rupees
Central Tax 10 lakhs 20 lakhs 20 lakhs
2. Deputy or Assistant Above Rupees 10 Above Rupees 20 Above Rupees 20
Commissioner of lakhs and not lakhs and not lakhs and not
Central Tax exceeding Rupees 1 exceeding Rupees 2 exceeding Rupees 2
crore crores crores
3. Additional or Joint Above Rupees 1 crore Above Rupees 2 crores Above Rupees 2 crores
Commissioner of without any limit without any limit without any limit
Central Tax
6. The central tax officers of Audit Commissionerates and Directorate General of Goods and Services
Tax Intelligence (hereinafter referred to as "DGGSTI") shall exercise the powers only to issue show
cause notices. A show cause notice issued by them shall be adjudicated by the competent central tax
officer of the Executive Commissionerate in whose jurisdiction the noticee is registered. In case there
are more than one noticees mentioned in the show cause notice having their principal places of
business falling in multiple Commissionerates, the show cause notice shall be adjudicated by the
competent central tax officer in whose jurisdiction, the principal place of business of the noticee from
whom the highest demand of central tax and/or integrated tax (including cess) has been made falls.
7. Notwithstanding anything contained in para 6 above, a show cause notice issued by DGGSTI in
which the principal places of business of the noticees fall in multiple Commissionerates and where the
central tax and/or integrated tax (including cess) involved is more than Rs. 5 crores shall be adjudicated
by an officer of the rank of Additional Director/Additional Commissioner (as assigned by the Board),
who shall not be on the strength of DGGSTI and working there at the time of adjudication. Cases of
similar nature may also be assigned to such an officer.
8. In case show cause notices have been issued on similar issues to a noticee(s) and made answerable to
different levels of adjudicating authorities within a Commissionerate, such show cause notices should
be adjudicated by the adjudicating authority competent to decide the case involving the highest amount
of central tax and/or integrated tax (including cess).
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