[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]
GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS
NotificationNo.18/2025 – Central Tax: Seeks to notify the Central Goods and Services Tax (Fourth Amendment) Rules 2025
New Delhi, the 31st October, 2025
G.S.R... (E). In exercise of the powers conferred by section 164 of the CGST Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:
—
(1) These rules may be called the CGST (Fourth Amendment) Rules, 2025.
(2) These rules shall come into force with effect from 1st day of November, 2025.
In the CGST Rules, 2017 (hereinafter referred to as the said rules), after rule 9, the following rule shall be inserted, namely: -
“9A. Grant of registration electronically. - Notwithstanding anything contained in rule 9, any person who has applied for registration under rule 8 or rule 12 or rule 17, shall, upon identification on the common portal based on data analysis and risk parameters, be granted registration electronically by the common portal, within three working days from the date of submission of application.”.
In the said rules, in sub-rule (1) of rule 10, after the words and figure "under rule 9,", the words, letters and figures "rule 9A and rule 14A," shall be inserted.
In the said rules, after rule 14, the following rule shall be inserted, namely: -
“14A. Option for taxpayers having monthly output tax liability below threshold limit. –
Any person who has made application for registration under rule 8 and who determines that his total output tax liability on supply of goods or services or both made to registered persons on account of central tax and State tax or Union territory tax and integrated tax and compensation cess, does not exceed two lakh and fifty thousand rupees per month, shall have an option to get registration electronically, in accordance with the provisions of this rule.
Any person, other than a person notified under sub-section (6D) of section 25, who has not opted for authentication of Aadhaar number, shall not be eligible for grant of registration in terms of this rule.
Notwithstanding anything contained in rule 11, a person registered under this rule in a State or Union territory shall not be eligible to obtain another registration in the same State or Union territory under this rule against the same Permanent Account Number.
Upon successful authentication of Aadhar number, the applicant referred to in sub-rule
(1) shall be granted registration electronically by the common portal, within three working days from the date of submission of application.
The registered person who intends to withdraw from the option availed under sub-rule (1), shall file an application, in FORM GST REG-32, duly signed or verified through electronic verification code on the common portal, either directly or through a Facilitation Centre notified by the Commissioner:
Provided that the registered person shall not be allowed to file such application unless he has furnished, -
returns for a period of minimum three months, where such application is filed before 1st April, 2026;
returns for a period of minimum one tax period, where such application is filed on or after 1st April, 2026; and
all the returns due for the period from the effective date of registration till the date of application for withdrawal:
Provided further that the registered person shall be allowed to file such application where no proceedings under section 29 have been initiated against such registered person.
Where there is any change in particulars furnished in FORM GST REG-01 by the person who has been granted registration under this rule, the said registered person shall get the particulars amended under rule 19 before filing an application for withdrawal under sub-rule (5).
Based on data analysis and risk parameters on the common portal, the provisions of sub-rule (4A) of rule 8 relating to authentication of Aadhaar number or biometric-based Aadhaar authentication, taking photograph of the applicant along with verification of
original copy of documents uploaded along with registration application in FORM GST REG-01, shall, so far as may be, apply to application for withdrawal filed under sub- rule (5).
The provisions of sub-rules (5) and (6) of rule 8 relating to issuance of acknowledgment, shall, mutatis mutandis, apply to the application filed under sub-rule (5).
The application filed for withdrawal under sub-rule (5), shall be verified in accordance with the provisions of rule 9.
Upon verification under sub-rule (9), the proper officer shall issue an order in FORM GST REG-33 allowing the application for withdrawal from the option availed under sub-rule (1) or order for rejection of application in FORM GST REG-05, within a period specified under rule 9, as the case may be, which shall be made available to the registered person on the common portal.
The registered person who has received an order issued under sub-rule (10) allowing withdrawal shall be able to furnish the details of output tax liability on supply of goods or services or both made to registered persons, exceeding the output tax liability as referred to in sub-rule (1), from the first day of succeeding month in which the said order has been issued.
A registered person to whom an order under sub-rule (10) has been issued, shall not amend the details furnished in respect of output tax liability so as to exceed the limit of the output tax liability specified in sub-rule (1) for the period prior to the first day of succeeding month in which the said order has been issued.
Where proceedings for cancellation of registration have been initiated by the proper officer after the filing of withdrawal application and the said proceedings are pending, the withdrawal application under sub-rule (5) shall be rejected by the proper officer and the provisions in relation to approval of application on deemed basis under sub-rule (5) of rule 9, shall not be applicable in such case.”.
In the said rules, in FORM GST REG-01, —
after the word, letters and figures “FORM GST REG-01” and before the words “Application for Registration”, for the brackets, words and figures “[See rule 8(1)]”, the brackets, words, figures and letter “[See rules 8(1) and 14A]” shall be substituted;
in Part-B, in the table, after serial number 4 and the entries relating thereto, the following serial numbers shall be inserted, namely: -
“4.1
Option for registration under rule 14A
YES NO
under the heading ‘Instructions for submission of Application for Registration’, after serial number 8, the following serial number shall be inserted, namely: -
“8A. Any person opting for registration under rule 14A shall undergo OTP based authentication of Aadhaar number.”.
In the said rules, in FORM GST REG-02, after the word, letters and figures “FORM GST REG-02”, for the brackets, words and figures “[See rule 8(5)]”, the brackets, words, figures and letter “[See rules 8(5) and 14A]” shall be substituted.
In the said rules, for the FORM GST REG-03, the following Form shall be substituted, namely:
—
“FORM GST REG-03
[Seerules9(2),19(2) and14A]
Reference Number: Date–
To
Name of the Applicant:
Address:
GSTIN/GSTP ID (if available):
Application Reference No. (ARN): Date:
Notice for Seeking Additional Information / Clarification
This is with reference to your <<registration/amendment/cancellation/withdrawal >> application filed vide ARN <> Dated –DD/MM/YYYY. The Department has examined your application and is not satisfied with it for the following reasons:
1.
2.
3.
…
You are directed to submit your reply by......... (DD/MM/YYYY)
*You are hereby directed to appear before the undersigned on ……… (DD/MM/YYYY) at ……. (HH:MM)
If no response is received by the stipulated date or if proceedings under section 29 is initiated against you, your application is liable for rejection.
Please note that no further notice / reminder will be issued in this matter.
* Not applicable for New Registration Application and Withdrawal.”.
Signature Name of the Proper Officer:
Designation: Jurisdiction:
In the said rules, for the FORM GST REG-04, the following Form shall be substituted, namely:
Whether any modification in the application for registration or fields is required.-
Yes No (Tick one)
8.
Additional Information
9.
List of Documents uploaded
Note: -
For new registration, original registration application will be available in editable mode if option ‘Yes’ is selected in item 7.
For amendment of registration particulars, the fields intended to be amended will be available in editable mode if option “Yes” is selected in item 7.
For withdrawal from option availed under rule 14A, item 7 will be disabled.”.
In the said rules, for the FORM GST REG-05, the following Form shall be substituted, namely:
—
“FORM GST REG-05
[Seerules9(4),19(4),23(2)(b)and14A]
Reference Number: Date–
To
Name of the Applicant Address -
GSTIN/ GSTP ID (if available)
Order of Rejection of Application for <Registration / Amendment / Cancellation/ Withdrawal >
This has reference to your reply filed vide ARN --- dated----. The reply has been examined and the same has not been found to be satisfactory for the following reasons:
1.
2.
3.
…Therefore, your application is rejected in accordance with the provisions of the Act. Or
You have not replied to the notice issued vide reference no. …….. dated............................................................................................. within the time
specified therein. Therefore, your application is hereby rejected in accordance with the provisions of the Act.
Signature Name Designation Jurisdiction”.
In the said rules, after the FORM GST REG-31, the following Form shall be inserted, namely:
—
“FORM GST REG-32
[See rule 14A (5)]
Application for Withdrawal
1. GSTIN
2. Legal name
3. Trade name, if any
4. Address of Principal Place of business
5. Option for registration under rule 14A
(i) Yes
(ii) No
6. Aadhaar Authentication
(i) Primary Authorized Signatory (auto)
(ii) Promoter/Partner (auto)
7. Reason for Withdrawal
Output tax liability in respect of supply made to registered person exceeds two lakh fifty thousand rupees per month. Other -Please specify
Instructions for submission of application for withdrawal
In ‘Option for registration under rule 14A’ field, option YES will be disabled on common portal.
Permanent Account Number shall be verified with Income Tax database.
Aadhaar Authentication of Primary Authorised Signatory and one selected Promoter or Partner is mandatory.
Before applying for withdrawal from the option availed under rule 14A, all the pending returns till the date of application shall be furnished. It is mandatory to furnish returns for a period of minimum three months, where such application has been filed before 1st April, 2026, and a minimum one tax period, where such application is filed on or after 1st April, 2026.
Please ensure that no amendment application is pending at the time of filing of FORM GST REG-32.
Once FORM GST REG-32 is filed, no amendment application will be allowed to be filed till the disposal of application under FORM GST REG-32.
ARN will be generated only after successful OTP based authentication of Aadhaar number or completion of the process of biometric based Aadhar authentication along with the verification of original copy of the documents uploaded with the application in FORM GST REG-01.
Please note that filing of cancellation application will not be allowed once FORM GST REG- 32 is filed till the disposal of application.
In case the proceedings under section 29 have been initiated, application for withdrawal in FORM GST REG-32 will not be allowed to be filed.”.
In the said rules, after the FORM GST REG-32, the following Form shall be inserted, namely:
—
“FORM GST REG-33
[See rule 14A (10)]
Reference Number - <<>> Date – DD/MM/YYYY
To (Name) (Address)
Registration Number (GSTIN)
Application Reference No. (ARN) Dated – DD/MM/YYYY Order of withdrawal from option availed under sub-rule (1) of rule 14A
This has reference to your application number------ dated submitted under sub- rule (6) of rule 14 A regarding withdrawal from the option availed under sub-rule (1) of rule 14A. Your application has been examined and the same has been accepted under the provisions of sub-rule
(11) of rule 14A. ct. The amended certificate of registration is available on your dashboard for download.
Signature Name Designation Jurisdiction
Date:
Place:”.
[F. No. CBIC-20013/3/2025-GST]
(Kangale Shrunkhala Motiram)
Director
Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i), vide notification No. 3/2017-Central Tax, dated the 19th June, 2017, published, vide number
G.S.R. 610(E), dated the 19th June, 2017 and were last amended, vide notification No. 13/2025– Central Tax, dated the 17th September, 2025, vide number G.S.R. 672(E), dated the 17th September, 2025.
📚 Frequently Asked Questions (FAQs): NotificationNo. 18/2025 – Central Tax
Q1: What is Notification No. 18/2025 – Central Tax?
Answer: It notifies the Central Goods and Services Tax (Fourth Amendment) Rules, 2025, introducing: Rule 9A: Automated GST registration Rule 14A: Optional registration scheme for small suppliers Updated forms and procedures It comes into effect from 1 November 2025. gst-ct-18-2025 Need GST registration? 👉 https://finodha.in/online-gst-registration/
Q2: What is Rule 9A?
Answer: Rule 9A introduces auto-approval of GST registration within 3 working days, based on: System identification Data analytics Risk parameters This avoids manual delays in approval.
Q3: Who can get registration through Rule 9A?
Answer: Normal applicants under Rule 8 TDS/TCS registrants under Rule 12 Non-resident taxable persons under Rule 17 Example: A freelance graphic designer applying for GST on Day 1 can be auto-approved by Day 3.
Q4: What is Rule 14A?
Answer: Rule 14A is a special registration option for taxpayers whose output tax liability ≤ ₹2.5 lakh per month. It offers: Faster registration Easier verification Lower compliance requirements
Q5: Is Aadhaar authentication mandatory under Rule 14A?
Answer: Yes ✔ Without Aadhaar authentication, the applicant cannot register under Rule 14A. gst-ct-18-2025 Need Aadhaar-linked GST help? 👉 https://finodha.in/gst-compliance/
Q6: Can I take multiple registrations under Rule 14A in the same State?
Answer: No ❌ Rule 14A prohibits obtaining more than one registration in a State/UT against the same PAN. gst-ct-18-2025
Q7: Can I withdraw from Rule 14A later?
Answer: Yes ✔ Use FORM GST REG-32 to withdraw, after fulfilling return-filing conditions.
Q8: What happens after filing REG-32?
Answer: The officer: Verifies the application under Rule 9 Approves withdrawal through REG-33, or Rejects through REG-05 gst-ct-18-2025
Q9: Does this affect GST registration for startups?
Answer: Absolutely! Startups often have low turnover initially. Rule 14A: Speeds up registration Reduces compliance Helps begin invoicing faster Want to start a company? 👉 https://finodha.in/private-limited-company/
Q10: Does physical verification still occur?
Answer: Only for high-risk cases or failed Aadhaar authentication, as per Rule 8(4A), now extended to Rule 14A withdrawals too.
Q11: Are any GST forms changed?
Answer: Yes. Multiple forms including REG-01, REG-03, REG-04, REG-05, REG-32, REG-33 are updated.
Q12: How does this help small B2B suppliers?
Answer: Small suppliers serving registered clients benefit through: Faster GSTIN Clear monthly tax liability limit Easy onboarding with business customers Example: A small textile supplier needs GSTIN quickly to supply to a garment retailer. Rule 14A makes this faster.
Q13: Is the output tax liability check monthly or annual?
Answer: Monthly ✔ You must ensure output tax does not exceed ₹2,50,000 per month.
Q14: What if tax liability exceeds the limit?
Answer: You must withdraw Rule 14A using REG-32 and follow regular GST rules thereafter.
Q15: Does this notification change GST tax rates?
Answer: No ❌ It only amends GST Rules, not tax rates.
⭐ Conclusion
Notification No. 18/2025 – Central Tax is one of the most significant GST updates of 2025. It streamlines GST registration through automation, reduces manual interference, and introduces a helpful optional scheme for small suppliers.
For smooth GST registration, Aadhaar authentication, return filing, or business setup:
Important Keyword: Notification No. 17/2025 – Central Tax, GSTR-3B due date extension 2025, GST return September 2025, QRMP GSTR-3B extension, Section 39 GST filing, GST compliance updates 2025, Finodha GST filing services.
Words: 838; Read time: 4 minutes.
Table of Contents
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
[F. No. CBIC-20006/45/2025-GST] GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS
NotificationNo. 17/2025 – Central Tax: Seeks to extend date of filing GSTR-3B.
New Delhi, the 18 October, 2025
G.S.R.....(E).- In exercise of the powers conferred by sub-section (6) of section 39 read with section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Commissioner, on the recommendations of the Council, hereby extends the time limit for furnishing the return in FORM GSTR-3B electronically, through the common portal, by the registered persons, as specified under:-
sub-section (1) of section 39, for the month of September,2025, till twenty-fifth day of October, 2025:
proviso to sub-section (1) of section 39, for the quarter of July, 2025 to September, 2025, till twenty-fifth day of October, 2025.
(Raushan Kumar) Under Secretary
📚 Frequently Asked Questions (FAQs): NotificationNo. 17/2025 – Central Tax
Q1: What is Notification No. 17/2025 – Central Tax?
Answer: It is a GST notification extending the GSTR-3B filing due date for: Monthly filers (September 2025) QRMP filers (July–September 2025) The new deadline is 25 October 2025. Need help filing correctly? 👉 https://finodha.in/gst-return-filing/
Q2: Why was the GSTR-3B date extended?
Answer: Because: September is a reconciliation-heavy month Many taxpayers face issues matching GSTR-1, GSTR-2B & books GST portal load spikes at quarter-end Industry requested uniform extension This extension helps avoid late fees & interest.
Q3: Who benefits from Notification 17/2025 – Central Tax?
Answer: ✔ Monthly GSTR-3B filers ✔ QRMP taxpayers ✔ Businesses needing extra time to reconcile invoices ✔ Businesses facing portal slowdowns
Q4: Is the extension applicable nationwide?
Answer: Yes ✔ It applies to ALL registered taxpayers pan-India.
Q6: Does interest & late fee apply if filed by 25 Oct?
Answer: No ✔ Since the due date itself is extended, no late fee or interest applies for returns filed by 25 October 2025.
Q7: Which section gives power for this extension?
Answer: The notification is issued under: Section 39(6) → Government may extend due dates Section 168 → Commissioner may issue instructions gst-ct-17-2025
Q8: What real-life scenario does this extension help with?
Answer: Example: A manufacturing business in Pune must reconcile thousands of invoices for September. Matching purchase invoices with GSTR-2B often takes time. Due to the extension: They get 7 extra days Avoid late fees Can file accurate GSTR-3B Need help with reconciliation? 👉 https://finodha.in/gst-compliance/
Q9: Does this extension apply to composition taxpayers?
Q10: What if someone still misses 25 October 2025?
Answer: Consequence: Late fee under Section 47 Interest under Section 50 ITC mismatch notices E-way bill restrictions Avoid penalties → 👉 https://finodha.in/gst-return-filing/
Q11: Will this affect annual return (GSTR-9) preparation?
Answer: Yes, positively ✔ Accurate GSTR-3B improves: Outward vs inward supply matching ITC reporting Annual return reconciliation
Q13: Will the extension delay tax payments?
Answer: Tax payment is part of GSTR-3B → so yes, payment is delayed till 25 Oct 2025. But taxpayers should avoid delaying payment unnecessarily to avoid cash-flow issues.
Q14: Does QRMP taxpayers’ IFF (Invoice Furnishing Facility) change?
Answer: No ❌ IFF due dates remain unchanged. Only GSTR-3B is extended.
Q15: Is this extension likely to repeat every year?
Answer: Not guaranteed. However, the government often extends September filing dates because: Q2 reconciliation is mandatory Many audits and compliances peak in September
⭐ Conclusion
Notification No. 17/2025 – Central Tax provides much-needed relief by extending GSTR-3B due dates for September 2025 and Q2 FY 2025–26 to 25 October 2025. This prevents penalties and offers extra time for accurate reconciliation.
For smooth GSTR-3B filing, ITC matching, or GST notice handling:
[TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3. SUB-SECTION (i)]
GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE)
New Delhi. the 24th October, 2025
Notification No. 18/2025 - Integrated Tax (Rate): Seeks to amend notification No. 26/2018 - Central Tax (Rate) dated 31.12.2018.
G.S.R……(E).- In exercise of the powers conferred by sub-section (1) of section 6 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 27/2018-Integrated Tax (Rate), dated the 31 December, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3. Sub-section (i), vide number G.S.R. 1266(E), dated the 31st December, 2018, namely:-
In the said notification, in the Explanation, for clause (c), the following clause shall be substituted, namely: -
"(c) "Nominated Agency" means entities mentioned in Lists 13, 14 and 15 appended to Table I of notification No. 45/2025-Customs, dated the 24th October, 2025 published in the Gazette of India, Extraordinary, Part 11, Section 3 Sub-section (i);"
This notification shall come into force on the 1 day of November, 2025.
Q1: What is Notification No. 18/2025 – Integrated Tax (Rate)?
Answer: It amends IGST-related provisions to align with the updated GST registration rules notified under Notification No. 18/2025 – Central Tax (Rate). It ensures inter-state suppliers benefit from: Rule 9A (automatic registration) Rule 14A (optional registration for low-tax suppliers) Need GST registration for inter-state supply? 👉 https://finodha.in/online-gst-registration/
Q2: Does this notification change IGST rates?
Answer: ❌ No. It changes procedural rules related to IGST compliance and registration—but tax rates remain unchanged.
Q3: How does Rule 9A affect IGST taxpayers?
Answer: Under Rule 9A: GST registration (including IGST) can be approved within 3 working days No physical verification unless high-risk This benefits new businesses supplying inter-state goods/services
Q4: What is Rule 14A in the context of IGST?
Answer: Rule 14A allows small B2B suppliers to obtain simplified GST registration if monthly output tax ≤ ₹2.5 lakh, enabling: Quick inter-state trade Reduced compliance Faster onboarding with vendors
Q5: Does this help startups doing inter-state services?
Answer: Yes ✔ Example: A freelance software developer in Pune providing services to a client in Delhi gets: Faster GSTIN approval Easy compliance Quicker business onboarding Want to set up your startup legally? 👉 https://finodha.in/setup-business/
Q6: Why was Notification No. 26/2018 amended again?
Answer: To update registration processes, ensure uniformity between IGST and CGST systems, and incorporate risk-based verification using modern data analytics.
Q7: Does this affect e-commerce registration?
Answer: Yes. E-commerce suppliers require mandatory IGST registration. Under Rule 9A, these registrations now: Get processed faster Face fewer delays Experience simpler KYC checks
Q8: Does Aadhaar authentication apply to IGST registrations too?
Answer: Yes ✔ Aadhaar authentication is mandatory for: Authorised signatory Partners Karta of HUF If Aadhaar is not available → alternate verification applies. Need Aadhaar authentication help? 👉 https://finodha.in/gst-compliance/
Q9: Does this reduce physical verification under IGST?
Answer: Yes. Physical verification now happens only for high-risk registrations, improving ease of doing business.
Q10: Can small inter-state traders use Rule 14A?
Answer: Yes ✔ If their monthly output tax ≤ ₹2.5 lakh and Aadhaar is authenticated, they can opt for Rule 14A.
Q11: Is this mandatory or optional?
Answer: Rule 14A is optional, not mandatory. Rule 9A (automatic registration) applies to all eligible applicants.
Q13: Does the notification apply to NRIs registering under IGST?
Answer: Yes. NRTP applicants under Rule 17 are included under Rule 9A electronic registration.
Q14: Will IGST taxpayers get faster registration now?
Answer: Yes ✔ Rule 9A significantly reduces the waiting period for GSTIN approval, benefiting businesses needing immediate inter-state trading capability.
Q15: What happens if Aadhaar authentication fails?
Answer: The system will trigger: Biometric verification Document-based verification Physical premises inspection This may delay GSTIN issue.
Q16: Do these amendments impact GST compliance filings (GSTR-1/3B)?
Answer: No changes directly to returns. However, quicker GST registration ensures taxpayers start filing on time. For return filing assistance: 👉 https://finodha.in/gst-return-filing/
⭐ Conclusion
Notification No. 18/2025 – Integrated Tax (Rate) ensures that the IGST system adopts the upgraded GST registration reforms, making it faster, safer, and more transparent. With automatic registration (Rule 9A) and simplified registration (Rule 14A), inter-state suppliers and new businesses benefit from smoother compliance.
If you need help with:
✔ GST Registration ✔ IGST compliance ✔ Setup of a new business ✔ Aadhaar authentication ✔ Return filing & notices
F. No. CBIC-20010/80/2025-GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes & Customs GST Policy Wing ******
Circular No. 254/11/2025 - GST: Assigning proper officer under section 74A, section 75(2) and section 122 of the Central Goods and Services Tax Act, 2017
To,
The Principal Chief Commissioners/ Chief Commissioners (All) The Principal Directors General / Directors General (All)
Madam/Sir,
Subject: Assigning proper officer under section 74A, section 75(2) and section 122 of the Central Goods and Services Tax Act, 2017 and the rules made thereunder–reg.
Attention is invited to the Board’s circular No. 1/1/2017-GST dated 26th June, 2017, through which the Board had assigned proper officers for provisions relating to registration and composition levy under the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the “CGST Act”) and the rules made thereunder. Further, attention is also invited to the Board's circular No. 3/3/2017-GST dated 5th July, 2017 and circular No. 31/05/2018-GST dated 9th February, 2018 (as amended) regarding appointment of proper officers under various provisions of the Central Goods and Services Tax Act, 2017 and Integrated Goods and Services Tax Act, 2017 (13 of 2017) (hereinafter referred to as the “IGST Act”).
It is observed that no proper officer has been assigned in respect of the following provisions of the CGST Act and the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as “CGST Rules”):
Section 74A of the CGST Act which shall be applicable for determination of tax not paid or short paid or erroneously refunded or input tax credit availed or utilised for any reason for the Financial Year 2024-25 onwards.
Section 75(2) of the CGST Act which provides where any Appellate Authority/ Appellate Tribunal/ Court concludes that the notice issued under section 74(1) is not sustainable for the reason that the charges of fraud or any wilful-misstatement or suppression of facts to evade tax has not been established against the person to whom the notice was issued, the proper officer shall determine the tax payable, deeming as if the notice were issued under section 73(1) of CGST Act.
Section 122 of the CGST Act, 2017 which provides for the penalties in respect of certain offences.
Rule 142(1A) of the CGST Rules 2017 which provides for issuance of a communication in FORM GST DRC-01A before issuance of any show cause notice under section 73 or section 74 or section 74 A of the CGST Act, 2017.
In exercise of the powers conferred by clause (91) of section 2 of the CGST Act read with Section 20 of the IGST Act and subject to sub-sections (1) and (2) of section 5 of the CGST Act, the Board hereby assigns the officers mentioned in Column (2) of the Table-I below, to functions as the proper officers in relation to the two sections of the Central Goods and Services Tax Act, 2017 or the rule, as given in the corresponding entry in Column (3) of the said Table:-
Table-I
S.No.
Designation of the officer
Functions under Section of the Central Goods and Services Tax Act, 2017 or the rules made thereunder
(1)
(2)
(3)
1.
a. Additional or Joint Commissioner of Central Tax,
Sub-sections (1), (2), (3), (6), (7), (8), (9) and (10) of Section 74 A. Section 122. Rule 142(1A) of the CGST Rules, 2017.
b. Deputy or Assistant Commissioner of Central Tax,
c. Superintendent of Central Tax
Whereas, for optimal distribution of work relating to the issuance of show cause notices and orders under section 74A and section 122 of the CGST Act and also under the IGST Act, monetary limits for different levels of officers of Central Tax need to be prescribed.
5.1 Therefore, in pursuance of clause (91) of section 2 of the CGST Act read with section 20 of the IGST Act and subject to sub-sections (1) and (2) of section 5 of the CGST Act, the Board hereby assigns the officers mentioned in column (2) of the Table-II below, the functions as the proper officers in relation to issuance of show cause notices and passing orders under
section 74A of the CGST Act and section 20 of the IGST Act (read with section 74A of the CGST Act), up to the monetary limits as mentioned in columns (3), (4) and (5) respectively of the Table below:-
Table-II
Monetary limit for issuance of show cause notices and passing of orders under section 74A of CGST Act
Sl.No.
Officer of Central Tax
Monetary limit of the amount of Central Tax (including cess) not paid or short paid or erroneously refunded or input tax credit of Central Tax wrongly availed or utilized for issuance of show cause notices and passing of orders under section 74A of CGST Act
Monetary limit of the amount of Integrated tax (including cess) not paid or short paid or erroneously refunded or input tax credit of Integrated tax wrongly availed or utilized for issuance of show cause notices and passing of orders under section 74A of CGST Act made applicable to matters in relation to integrated tax vide section 20 of the IGST Act
Monetary limit of the amount of Central Tax and Integrated tax (including cess) not paid or short paid or erroneously refunded or input tax credit of Central Tax and Integrated Tax wrongly availed or utilized for issuance of show cause notices and passing of orders under section 74A of CGST Act made applicable to Integrated tax vide section 20 of the IGST Act
(1)
(2)
(3)
(4)
(5)
1.
Superintendent of Central Tax
Not exceeding Rupees 10 lakh
Not exceeding Rupees 20 lakh
Not exceeding Rupees 20 lakh
2.
Deputy or Assistant Commissioner of Central Tax
Above Rupees 10 lakh and not exceeding Rupees 1 crore
Above Rupees 20 lakh and not exceeding Rupees 2 crore
Above Rupees 20 lakh and not exceeding Rupees 2 crore
3.
Additional or Joint Commissioner of Central Tax
Above Rupees 1 crore without any limit
Above Rupees 2 crore without any limit
Above Rupees 2 crore without any limit
It is clarified that where a show cause notice issued under section (1) of the section 73 or section 74 or section 74A of CGST Act, 2017 involves demand of both Central Tax and Integrated Tax (including cess), the proper officer shall be determined on the basis of the combined amount of Central Tax and Integrated Tax (including cess), mentioned in column (5) of the Table-II above, irrespective of the individual amounts of Central Tax or Integrated Tax (including cess) which may exceed the monetary limit prescribed in column (3) or column (4) of the Table-II above.
The proper officer may serve a statement under sub-sections (3) and (4) of section 73 or section 74 or section 74A of the CGST Act, 2017 containing details of tax not paid or short paid for a subsequent period after the show cause notice has been issued under sub-section (1) of section 73 or section 74 or section 74A of the CGST Act, 2017 of the said section. In such cases it is clarified that:
The proper officer shall be determined based on the highest amount of tax specified in the show cause notice and statement across all tax periods.
Where the notice under sub-section (1) of section 73 or section 74 or section 74A of the CGST Act, 2017 has been issued by a proper officer within his monetary limit but the amount of tax demanded in the subsequent statement goes beyond his monetary limits and which pertains to monetary limit corresponding to the competency of a higher-ranked officer as per the prescribed monetary limits, the proper officer for issuing the statement shall also be decided on the basis of the prescribed monetary limits in Table-II above. The proper officer who has issued the earlier show cause notice and statement (if any issued), shall issue a corrigendum and make the earlier show cause notice and statement (if any issued) answerable to the proper officer competent to adjudicate the statement with the higher amount of tax demanded.
In case there is no change in the monetary limit when the statement is issued, the statement shall be issued by the same proper officer who has issued the show cause notice in sub-section (1) of section 73 or section 74 or section 74A of CGST Act, and he shall make the statement answerable to the same adjudication authority mentioned in the show cause notice issued earlier.
The proper officer shall be determined based solely on the amount of tax demanded, excluding penalties from the calculations.
For notices issued by officers of Audit Commissionerate of Central Tax, the proper officer of the jurisdictional Central Tax Commissionerate of the noticee shall make the statement to be issued under sub-sections (3) and (4) of section 73 or section 74 or section 74A of the CGST Act answerable to the adjudicating authority mentioned in the earlier show cause notice issued under sub-section (1) of section 73 or section 74 or section 74A of the CGST Act, 2017.
6. Section 75(2) of CGST Act provides that where any Appellate Authority or Appellate Tribunal or Court concludes that the notice issued under section 74(1) of CGST Act, is not sustainable for the reason that the charges of fraud or any wilful-misstatement or suppression of facts to evade tax has not been established against the person to whom the notice was issued, the proper officer shall determine the tax payable by such person, deeming as if the notice were issued under section 73(1) of CGST Act.
It is clarified that the proper officer for this purpose shall be the same officer who is the adjudicating authority for such show cause notice in respect of which the Appellate Authority or Appellate Tribunal or Court has concluded that the notice issued under section 74(1) of CGST Act is not sustainable.
7.1. Further, in pursuance of clause (91) of section 2 of the CGST Act read with section 20 of the IGST Act and subject to sub-sections (1) and (2) of section 5 of CGST Act, 2017, the Board hereby assigns the officers mentioned in Column (2) of the Table-III below, the functions as the proper officers in relation to issue of show cause notices and passing orders under section 122 of the CGST Act and section 20 of the IGST Act (read with section 122 of the CGST Act), up to the monetary limits as mentioned in columns (3), (4) and (5) respectively of the Table below:-
Table-III
Monetary limit for issuance of show cause notices and passing of orders under section 122 of CGST Act
Sl.No.
Officer of Central Tax
Monetary limit of the amount of penalty in relation to the Central Tax for issuance of show cause notices involving only penalty and passing of orders under section 122 of CGST Act
Monetary limit of the amount of penalty in relation to the Integrated Tax for issuance of show cause notices involving only penalty and passing of orders under section 122 of CGST Act made applicable to matters in relationto Integrated Tax
Monetary limit of the amount of penalty in relation to the Central Tax and Integrated Tax for issuance of show cause notices involving only penalty and passing of orders under section 122 of CGST Act made applicable to matters in relation toIntegrated Tax vide
vide section 20 of the IGST Act
section 20 of the IGST Act
(1)
(2)
(3)
(4)
(5)
1.
Superintendent of Central Tax
Not exceeding Rupees 10 lakh
Not exceeding Rupees 20 lakh
Not exceeding Rupees 20 lakh
2.
Deputy or Assistant Commissioner of Central Tax
Above Rupees 10 lakh and not exceeding Rupees 1 crore
Above Rupees 20 lakh and not exceeding Rupees 2 crore
Above Rupees 20 lakh and not exceeding Rupees 2 crore
3.
Additional or Joint Commissioner of Central Tax
Above Rupees 1 crore without any limit
Above Rupees 2 crore without any limit
Above Rupees 2 crore without any limit
7.2 It is also clarified that where a show cause notice is issued under section 122 of the CGST Act, 2017 and involves demand of penalty in relation to both Central Tax and Integrated Tax, the proper officer shall be determined on the basis of the combined amount of penalty in relation to both Central Tax and Integrated Tax, mentioned in column (5) of the Table-III above, irrespective of the individual amounts of penalty in relation to the Central Tax and Integrated Tax¸ which may exceed the monetary limit prescribed in column (3) or column (4) of the Table-III above.
It is requested that suitable trade notices may be issued to publicise the contents of this circular.
Difficulty, if any, in implementation of the above instructions may please be brought to the notice of the Board.
Answer: Circular No. 254/11/2025-GST assigns the proper officers responsible for exercising powers under Section 74A, Section 75(2), Section 122 of the CGST Act, 2017, and Rule 142(1A) of the CGST Rules. It also prescribes monetary limits for issuing show cause notices and passing orders under these provisions. The objective is to ensure uniformity, avoid jurisdictional confusion, and streamline GST adjudication across the country.
Q2. Why was this circular issued?
Answer: The circular was issued because no proper officers had been specifically assigned for certain newly introduced or existing provisions, including Section 74A, Section 75(2), Section 122, and Rule 142(1A). In simple terms, CBIC wanted to clearly define which GST officer has the authority to issue notices and pass orders. This reduces procedural disputes and ensures that GST proceedings are handled by the correct adjudicating authority.
Q3. Which officers have been assigned as proper officers under this circular?
Answer: The circular assigns Superintendents of Central Tax, Deputy/Assistant Commissioners of Central Tax, and Additional/Joint Commissioners of Central Tax as proper officers for exercising powers under the specified provisions. However, the authority of each officer depends on the monetary limits prescribed in the circular. Higher-value cases are handled by senior officers, while lower-value matters remain with field-level officers. This allocation is detailed in Tables I, II, and III of the circular.
Q4. What are the monetary limits under Section 74A?
Answer: The circular prescribes different monetary limits based on the amount of tax involved. Superintendent: Up to ₹10 lakh (CGST) or ₹20 lakh (IGST/combined). Deputy/Assistant Commissioner: Above ₹10 lakh up to ₹1 crore (CGST) or above ₹20 lakh up to ₹2 crore (IGST/combined). Additional/Joint Commissioner: Above these limits without any upper ceiling. These limits are provided in Table II of the circular.
Q5. How are monetary limits determined when both CGST and IGST are involved?
Answer: If a show cause notice involves both Central Tax and Integrated Tax, the proper officer is determined based on the combined amount of CGST and IGST (including cess). Many businesses actually face this issue because they assume each tax component is considered separately. The circular clarifies that the aggregate amount should be considered while deciding the competent officer, irrespective of the individual tax amounts.
Q6. What happens if the tax demand increases after a subsequent statement is issued?
Answer: The circular provides a clear mechanism for such situations. If a subsequent statement under Section 73, 74, or 74A increases the tax demand beyond the monetary limit of the officer who issued the original notice, the case must be transferred to the competent higher-ranking officer. The earlier officer is required to issue a corrigendum making the original notice answerable before the newly competent adjudicating authority.
Q7. Who acts as the proper officer under Section 75(2)?
Answer: Section 75(2) applies where an appellate authority, tribunal, or court holds that allegations of fraud or suppression under Section 74 are not sustainable. The circular clarifies that the same adjudicating officer who handled the original Section 74 notice will determine the tax liability by treating the notice as one issued under Section 73. This ensures continuity and avoids duplication of proceedings.
Q8. How are proper officers assigned for penalty proceedings under Section 122?
Answer: The same hierarchy of officers and monetary limits also applies to penalty-only proceedings under Section 122. Let’s understand this with an example. If the proposed penalty is ₹8 lakh under CGST, the Superintendent can adjudicate the matter. However, if the penalty exceeds ₹1 crore under CGST, the case falls within the jurisdiction of the Additional or Joint Commissioner. These limits are provided in Table III of the circular.
Q9. Are penalties considered while deciding the competent officer under Section 74A?
Answer: No. The circular specifically states that, for determining the competent officer under Section 74A, only the amount of tax demanded should be considered. If you look at it practically, this means penalties are ignored while deciding jurisdiction. This clarification avoids confusion where large penalties might otherwise appear to shift the case to a higher authority.
Q10. Why is this circular important for taxpayers?
Answer: This circular improves transparency by clearly defining which officer can issue notices and pass orders depending on the amount involved. For taxpayers, this reduces jurisdictional disputes and provides greater certainty during GST investigations and adjudication. It also helps businesses understand whether a notice has been issued by the appropriate authority, which is an important procedural safeguard under GST law. Related Resource: GST Compliance: https://finodha.in/gst-compliance/
F. No. CBIC-20001/3/2025-GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy Wing ******
North Block, New Delhi Dated the 1st October, 2025
Kind attention is invited to circular No. 212/6/2024-GST dated 26th June, 2024 wherein clarifications were given in relation to mechanism for providing evidence of compliance of conditions of Section 15(3)(b)(ii) of the CGST Act, 2017 by the suppliers.
In order to ensure uniformity in the implementation of the provisions of the law across field formations, the Board, in exercise of its powers conferred by section 168(1) of the Central Goods and Services Tax Act, 2017, hereby withdraws, circular No. 212/6/2024-GST dated 26th June, 2024. Therefore, the procedure prescribed vide the aforesaid circular for providing evidence of compliance of conditions of Section 15(3)(b)(ii) shall not be required.
It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
Difficulty, if any, in implementation of this circular may please be brought to the notice of the Board.
Answer: Circular No. 253/10/2025-GST withdraws Circular No. 212/6/2024-GST, which had prescribed a mechanism for suppliers to provide evidence of compliance with the conditions under Section 15(3)(b)(ii) of the CGST Act, 2017. As a result, the documentation procedure introduced through the earlier circular is no longer required. The withdrawal has been issued under Section 168(1) of the CGST Act to ensure uniform implementation of GST law.
Q2. Which circular has been withdrawn by CBIC?
Answer: CBIC has withdrawn Circular No. 212/6/2024-GST dated 26 June 2024. The withdrawn circular had explained how suppliers could demonstrate compliance with the conditions specified under Section 15(3)(b)(ii) relating to post-supply discounts. With Circular No. 253/10/2025-GST, that prescribed procedure is no longer applicable, although the statutory provisions of the GST law continue to remain in force.
Q3. Does this withdrawal mean Section 15(3)(b)(ii) has been removed from the CGST Act?
Answer: No. This is one of the most common misunderstandings. The circular withdraws only the administrative procedure prescribed for demonstrating compliance. It does not amend, delete, or dilute Section 15(3)(b)(ii) of the CGST Act. Businesses must still satisfy all legal conditions prescribed under the Act for claiming GST adjustments relating to eligible post-supply discounts.
Q4. What was the purpose of Circular No. 212/6/2024-GST?
Answer: The earlier circular provided guidance on the mechanism for furnishing evidence that suppliers had complied with the conditions laid down in Section 15(3)(b)(ii) of the CGST Act. Many businesses actually faced uncertainty regarding the type of documentation required during GST assessments. The circular attempted to standardise this process. However, CBIC has now decided to withdraw that prescribed mechanism.
Q5. What changes after the withdrawal of Circular No. 212/6/2024-GST?
Answer: The most significant change is that the specific procedure prescribed by Circular No. 212/6/2024-GST is no longer mandatory. In simple terms, taxpayers are no longer required to follow the documentation mechanism introduced through that circular. However, this does not relieve businesses from maintaining sufficient records to demonstrate compliance with the requirements of the CGST Act whenever necessary.
Q6. Does this circular affect GST treatment of post-supply discounts?
Answer: No. The circular does not alter the GST treatment of post-supply discounts. If you look at it practically, the law relating to valuation under Section 15(3)(b)(ii) remains exactly the same. Only the procedure prescribed by the earlier circular for evidencing compliance has been withdrawn. Businesses should therefore continue complying with the statutory conditions under the Act.
Q7. Should suppliers continue maintaining documentary evidence after this circular?
Answer: Yes. Even though the prescribed mechanism has been withdrawn, maintaining proper documentation remains a sound compliance practice. Businesses should retain agreements, credit notes, commercial correspondence, accounting records, and other supporting documents wherever discounts are claimed under Section 15(3)(b)(ii). Proper documentation can help resolve queries during GST audits or departmental scrutiny.
Q8. Why did CBIC withdraw the earlier circular?
Answer: The circular itself does not provide detailed reasons for the withdrawal. It simply states that, in exercise of the powers under Section 168(1) of the CGST Act, the Board has withdrawn Circular No. 212/6/2024-GST to ensure uniform implementation of GST law. Therefore, businesses should avoid assuming that the underlying legal requirements have changed merely because the procedural circular has been withdrawn.
Q9. Is this circular applicable to all GST taxpayers?
Answer: The circular is particularly relevant for businesses that rely on post-supply discounts and need to comply with Section 15(3)(b)(ii) of the CGST Act. Manufacturers, distributors, FMCG companies, pharmaceutical businesses, automobile dealers, and other sectors where incentive schemes or post-sale discounts are common should carefully review the impact of this withdrawal on their documentation processes.
Q10. What should businesses do after this clarification?
Answer: Businesses should review their existing SOPs and remove references that require compliance with the withdrawn procedural circular. However, they should continue ensuring that every post-supply discount satisfies the conditions prescribed under Section 15(3)(b)(ii) of the CGST Act. Related Resource: GST Compliance: https://finodha.in/gst-compliance/
Q11. Does the withdrawal reduce GST compliance requirements?
Answer: Not necessarily. The withdrawal removes a prescribed procedural mechanism but does not reduce the legal burden of proving eligibility under the GST law. Let’s understand this with an example. If a supplier issues post-supply discounts through credit notes, the supplier may no longer be required to follow the withdrawn procedure, but must still maintain adequate records to establish that all statutory conditions are fulfilled if questioned by the tax authorities.
