On December 4, 2024, the Central Board of Indirect Taxes and Customs (CBIC) issued Circular No. 239/33/2024-GST, which marks a significant amendment to Circular No. 31/05/2018-GST. The update primarily pertains to the designation of “proper officers” under Sections 73 and 74 of the Central Goods and Services Tax (CGST) Act, 2017, and aims to streamline the adjudication of Show Cause Notices (SCNs) issued by the Directorate General of GST Intelligence (DGGI).
This move is part of a broader effort by the GST Policy Wing to increase administrative efficiency, reduce ambiguity, and ensure fair adjudication across jurisdictions.
Background: Why This Amendment Was Needed
In March 2022, Notification No. 02/2022-Central Tax introduced para 3A into Notification No. 02/2017, empowering Additional/Joint Commissioners of Central Tax in certain Commissionerates with All India Jurisdiction to adjudicate SCNs issued by DGGI. This was a critical shift, given the cross-jurisdictional nature of many GST cases.
In continuation of this reform, Notification No. 27/2024-Central Tax, effective December 1, 2024, further expands the scope by substituting Table V in the 2017 notification. It empowers more Commissionerates across zones to adjudicate such cases and updates the allocation of adjudication responsibility.
Key Provisions of the New Circular
- Expanded Jurisdiction for Adjudication
The revised Para 7.1 of the 2018 Circular outlines situations involving:
Multiple noticees (with same or different PANs)
SCNs related to the same issue across multiple jurisdictions
In such cases, one Additional or Joint Commissioner (empowered with All India jurisdiction) will adjudicate all the related SCNs. This reduces duplication and ensures coherent rulings.
- Allocation Based on Demand Value and Location
Adjudication authority will be determined based on the location of the noticee with the highest tax demand, as per a table now included in the circular. For example, if the highest tax demand falls under the Ahmedabad Zone, the SCN will be adjudicated by the Additional/Joint Commissioner of Ahmedabad South.
- Clarification for Subsequent SCNs
A new Para 7.1.1 addresses SCNs issued later on the same issue. It clarifies:
If only one GSTIN is involved, adjudication will be done by the jurisdictional officer.
If multiple GSTINs are involved, it follows the same All India jurisdiction criteria, based on tax demand.
- Treatment of Pending SCNs (Pre-December 1, 2024)
Revised Para 7.3 covers SCNs issued before Notification No. 27/2024 took effect. If no adjudication order was passed by November 30, 2024, the SCNs can be realigned with the new structure through corrigenda, allowing adjudication by the newly designated All India officers.
What This Means for Taxpayers and Officers
This circular is a progressive step toward clarity and consistency in GST adjudication. It benefits:
Taxpayers, by reducing conflicting judgments and jurisdictional confusion.
Adjudicating authorities, by improving caseload management and accountability.
DGGI officers, by streamlining the process of issuing and following up on SCNs.