CGST Act Sections 3–5: Administrative Framework & All-India Adjudication Powers in DGGI Cases

Administrative Framework and Jurisdictional Architecture under the CGST Act: An Analysis of Sections 3–5 and the Expansion of All-India Adjudication Powers in DGGI Cases

Chapter II of the CGST Act, 2017 (Sections 3–5) establishes the statutory framework for appointment, hierarchy, and powers of Central Tax Officers. Section 3 creates eight classes of officers and provides a deeming provision for officers under the Central Excise Act, ensuring continuity. Section 4 empowers the Board to appoint officers, while Section 5 authorizes them to exercise statutory powers, including delegation, subject to separation of appellate functions. Notification No. 02/2017–Central Tax operationalized this framework by defining territorial, appellate, and audit jurisdiction through Tables I–IV. Subsequently, Notification No. 14/2017–Central Tax brought DGGI officers within the statutory fold as Central Tax Officers. A major shift occurred through Notification No. 02/2022–Central Tax, inserting Paragraph 3A and Table V, granting specified Additional/Joint Commissioners All-India adjudication powers for DGGI-issued notices. Notification No. 27/2024–Central Tax further expanded such authority from 10 to 23 Commissionerates, significantly widening nationwide adjudication powers in intelligence-based GST cases.

 Chapter II (Administration) of the Central Goods and Services Tax Act, 2017 (“CGST Act, 2017”) lays down the statutory framework relating to the constitution, appointment and functioning of tax authorities under the GST regime.

Officer of Central Tax

Section 3 (Officers under this Act) of the CGST Act, 2017 provides for the creation of posts/classes of officers and their appointment. The provision statutorily recognises eight classes of officers under the Act, who are to be appointed by the Government through notification. In addition to these specified categories, the Government is also empowered to notify such other classes of officers as it may deem necessary for the effective administration of the Act.

The eight classes of officers prescribed under Section 3 are as follows:

1. Principal Chief Commissioner of Central Tax or Principal Director General of Central Tax

2. Chief Commissioner of Central Tax or Director General of Central Tax

3. Principal Commissioner of Central Tax or Principal Additional Director General of Central Tax

4. Commissioner of Central Tax or Additional Director General of Central Tax

5. Additional Commissioner of Central Tax or Additional Director General of Central Tax

6. Joint Commissioner of Central Tax or Joint Director General of Central Tax

7. Deputy Commissioner of Central Tax or Deputy Director General of Central Tax

8. Assistant Commissioner of Central Tax or Assistant Director General of Central Tax

Thus, Section 3 establishes a structured administrative hierarchy under the CGST framework, ensuring clarity in designation and chain of authority.

It is pertinent to note that the proviso to Section 3 of the CGST Act, 2017 contains a deeming provision whereby officers appointed under the Central Excise Act, 1944 are deemed to have been appointed as officers under the CGST Act, 2017. This transitional arrangement ensured administrative continuity and avoided disruption in enforcement and adjudication functions upon the introduction of the GST regime.

Section 4 of the CGST Act, 2017 empowers the Central Board of Indirect Taxes and Customs (“Board”) to appoint such persons as it may think fit to be officers of central tax, in addition to those appointed under Section 3. Thus, Sections 3 and 4 collectively deal with the creation of posts and appointment of officers under the CGST framework. It is important to note that all persons appointed under Sections 3 and 4 are designated as “officers of central tax” for the purposes of the Act.

Power of Officers

Section 5 of the CGST Act, 2017 deals with the powers of these officers. Under Section 5(1), officers of central tax are authorised to exercise the powers and discharge the duties conferred or imposed upon them under the Act. Further, such officers may also exercise the powers and discharge the duties conferred or imposed under the Act on any other officer of central tax who is subordinate to them. This establishes a hierarchical framework where superior officers can lawfully exercise the statutory powers vested in subordinate officers.

However, a significant limitation is prescribed: an Appellate Authority shall not exercise the powers or discharge the duties conferred or imposed on any other officer of central tax. This ensures functional separation between adjudicatory and appellate roles under the GST regime.

Additionally, Section 5 recognises the power of delegation. The Commissioner may, subject to such conditions and limitations as may be specified, delegate his powers to any other officer who is subordinate to him. This delegation mechanism facilitates administrative efficiency while maintaining statutory control within the hierarchy.

Thus, Sections 3, 4, and 5 together create a structured administrative mechanism under the CGST Act, defining (i) the classes of officers, (ii) their appointment, and (iii) the scope and delegation of their statutory powers.

 Notification No. 02/2017-Central Tax dated June 19, 2017

It is pertinent to note that the Board, vide Notification No. 02/2017–Central Tax dated 19 June 2017, has exercised its powers under Section 3 read with Section 5 of the CGST Act, 2017 and Section 3 of the Integrated Goods and Services Tax Act, 2017 (“IGST Act, 2017”) to appoint and authorise specified classes of officers to exercise powers and discharge duties under the GST framework.

Through the said notification, the Board appointed the following classes of officers as Central Tax Officers:

a. Principal Chief Commissioners of Central Tax and Principal Directors General of Central Tax,

b. Chief Commissioners of Central Tax and Directors General of Central Tax,

c. Principal Commissioners of Central Tax and Principal Additional Directors General of Central Tax,

d. Commissioners of Central Tax and Additional Directors General of Central Tax,

e. Additional Commissioners of Central Tax and Additional Directors of Central Tax,

f. Joint Commissioners of Central Tax and Joint Directors of Central Tax,

g. Deputy Commissioners of Central Tax and Deputy Directors of Central Tax,

h. Assistant Commissioners of Central Tax and Assistant Directors of Central Tax,

i. Commissioners of Central Tax (Audit),

j. Commissioners of Central Tax (Appeals),

k. Additional Commissioners of Central Tax (Appeals)

In addition to the above, the notification also covers the central tax officers subordinate to these authorities.

The notification vests these officers with all the powers under the CGST Act, 2017 and the IGST Act, 2017, along with the powers under the rules framed thereunder, subject to the territorial and functional jurisdiction specified in the respective Tables annexed to the notification.

Accordingly, Notification No. 02/2017–Central Tax operationalizes Sections 3 and 5 of the CGST Act by not merely appointing officers but also conferring upon them statutory authority to administer and enforce both the CGST and IGST enactments within the jurisdiction assigned to them.

Territorial Jurisdiction of the Principal Chief Commissioner/Chief Commissioner of Central Tax

Table I of Notification No. 02/2017–Central Tax dated 19 June 2017 specifies the territorial jurisdiction of the Principal Chief Commissioner of Central Tax and Chief Commissioner of Central Tax.

Under the said Table, the Principal Chief Commissioner/Chief Commissioner of Central Tax exercises supervisory and administrative jurisdiction over the following officers within the territorial limits specified therein:

• Principal Commissioners of Central Tax and Commissioners of Central Tax;
• Commissioners of Central Tax (Appeals);
• Additional Commissioners of Central Tax (Appeals); and
• Commissioners of Central Tax (Audit).

Thus, Table I establishes the highest tier of territorial administrative control under the CGST framework, placing the above officers within the supervisory jurisdiction of the respective Principal Chief Commissioner or Chief Commissioner for the region concerned.

For instance, as per Table I of Notification No. 02/2017–Central Tax dated 19 June 2017, the Chief Commissioner, Meerut exercises territorial and administrative jurisdiction over the following officers within the notified region:

 (a) Principal Commissioners / Commissioners (Executive):

• • Principal Commissioner, Meerut
  • Principal Commissioner, Noida
  • Commissioner, Ghaziabad
  • Commissioner, Gautam Budh Nagar
  • Commissioner, Dehradun

(b) Commissioners (Appeals) and corresponding Appellate Authorities:

• • Commissioner (Appeals), Meerut
  • Additional Commissioner (Appeals)
  • Commissioner (Appeals), Noida
  • Additional Commissioner (Appeals)
  • Commissioner (Appeals), Dehradun
  • Additional Commissioner (Appeals)

(c) Commissioners (Audit):

• • Commissioner (Audit), Meerut
  • Commissioner (Audit), Noida
  • Commissioner (Audit), Dehradun

Accordingly, the Chief Commissioner, Meerut functions as the apex supervisory authority within the territorial zone, exercising administrative control over executive, appellate, and audit Commissionerates situated in Meerut, Noida, Ghaziabad, Gautam Budh Nagar, and Dehradun.

Territorial Jurisdiction of the Principal Commissioner/Commissioner of Central Tax

Table II of Notification No. 02/2017–Central Tax dated 19 June 2017 specifies the territorial jurisdiction of the Principal Commissioner / Commissioner of Central Tax and the central tax officers subordinate to them. Unlike Table I, which delineates supervisory control at the Chief Commissioner level, Table II defines the actual geographical jurisdiction within which assessment, adjudication, audit, investigation and other statutory functions are to be exercised.

1. Principal Commissioner / Commissioner of Central Tax, Meerut

The territorial jurisdiction extends over the following districts in the State of Uttar Pradesh:

• Meerut, Baghpat, Muzaffarnagar, Saharanpur, Shamli, Amroha, Moradabad, Bijnor, Rampur

Accordingly, all central tax officers subordinate to the Principal Commissioner / Commissioner, Meerut are empowered to exercise statutory powers within these districts.

2. Principal Commissioner / Commissioner of Central Tax, Ghaziabad

The territorial jurisdiction extends over:

• District Ghaziabad in the State of Uttar Pradesh.

Thus, the officers subordinate to the Principal Commissioner / Commissioner, Ghaziabad are authorised to exercise powers under the CGST and IGST Acts within the territorial limits of District Ghaziabad.

3.Principal Commissioner / Commissioner having jurisdiction over Gautam Buddh Nagar (excluding NOIDA area):

The territorial jurisdiction covers:

• District of Gautam Buddh Nagar (excluding the areas falling under the jurisdiction of the New Okhla Industrial Development Authority – NOIDA); and
• Districts of Bulandshahr, Bareilly, Badaun, Sambhal and Pilibhit in the State of Uttar Pradesh.

Thus, areas of Gautam Buddh Nagar that are not administered by NOIDA fall under this Commissionerate, along with the above-mentioned districts.

4. Principal Commissioner / Commissioner of Central Tax, Dehradun-

The territorial jurisdiction extends over the entire State of Uttarakhand.

5. Principal Commissioner / Commissioner of Central Tax, Noida-

The territorial jurisdiction covers:

• Areas falling under the jurisdiction of the New Okhla Industrial Development Authority (NOIDA) in the District of Gautam Buddh Nagar; and
• Areas falling in District Hapur in the State of Uttar Pradesh.

Accordingly, the jurisdiction of Gautam Buddh Nagar is administratively bifurcated between the Noida Commissionerate (for NOIDA-notified areas) and the other Commissionerate (for the remaining areas of the district), ensuring clear demarcation of territorial authority under the CGST framework.

In essence, Table II operationalises the field-level jurisdiction by clearly demarcating district-wise authority of each Commissionerate, thereby ensuring clarity in administration and avoiding overlapping territorial control.

Territorial Jurisdiction of Commissioner of Central Tax (Appeals) / Additional Commissioner of Central Tax (Appeals)

Table III of Notification No. 02/2017–Central Tax dated 19 June 2017 specifies the territorial and functional jurisdiction of the Commissioner of Central Tax (Appeals) / Additional Commissioner of Central Tax (Appeals), along with the central tax officers subordinate to them.

Unlike Table II, which deals with geographical jurisdiction of executive Commissionerates, Table III determines the appellate jurisdiction by linking the Appellate Authority to specified Principal Commissioners / Commissioners of Central Tax whose orders are appealable before them.

1. Commissioner of Central Tax (Appeals) / Additional Commissioner of Central Tax (Appeals), Meerut

The appellate jurisdiction extends over orders passed by:

• Principal Commissioner or Commissioner of Central Tax, Meerut; and
• Principal Commissioner or Commissioner of Central Tax, Ghaziabad.

Thus, any appeal arising from adjudication orders passed by the executive authorities under the Meerut and Ghaziabad Commissionerates would lie before the Commissioner (Appeals), Meerut (or the corresponding Additional/Joint Commissioner (Appeals), as notified).

2. Commissioner of Central Tax (Appeals) / Additional Commissioner of Central Tax (Appeals), Noida

• Principal Commissioner or Commissioner of Central Tax, Noida; and
• Principal Commissioner or Commissioner of Central Tax, Gautam Budh Nagar

3. Commissioner of Central Tax (Appeals) / Additional Commissioner of Central Tax (Appeals), Dehradun

• Principal Commissioner or Commissioner of Central Tax, Dehradun

Accordingly, Table III ensures structured appellate supervision by clearly mapping executive Commissionerates to their designated Appellate Authorities under the CGST framework.

Territorial Jurisdiction of Commissioner of Central Tax (Audit)

Table IV of Notification No. 02/2017–Central Tax dated 19 June 2017 specifies the territorial and functional jurisdiction of the Commissioner of Central Tax (Audit) and the central tax officers subordinate to them.

While Table II delineates executive (assessment/adjudication) jurisdiction and Table III specifies appellate jurisdiction, Table IV identifies the Commissionerates whose records and registered persons fall within the audit jurisdiction of a particular Commissioner (Audit).

1. Commissioner of Central Tax (Audit), Meerut

The audit jurisdiction extends over matters pertaining to:

• Principal Commissioner or Commissioner of Central Tax, Meerut; and
• Principal Commissioner or Commissioner of Central Tax, Ghaziabad.

Accordingly, the Commissioner (Audit), Meerut and the officers subordinate thereto are empowered to conduct audit under Section 65 of the CGST Act, 2017 in respect of registered persons falling within the territorial jurisdiction of the Meerut and Ghaziabad executive Commissionerates.

2. Commissioner of Central Tax (Audit), Dehradun

The audit jurisdiction extends over matters pertaining to:

• Principal Commissioner or Commissioner of Central Tax, Dehradun

3. Commissioner of Central Tax (Audit), Noida

The audit jurisdiction extends over matters pertaining to:

• Principal Commissioner or Commissioner of Central Tax, Noida; and
• Principal Commissioner or Commissioner of Central Tax, Gautam Budh Nagar

Thus, Table IV ensures that audit functions are administratively mapped to specified executive Commissionerates, maintaining structural clarity and avoiding overlapping audit authority under the GST framework.

Notification No. 14/2017–Central Tax dated 1 July 2017

It is also pertinent to note that Notification No. 02/2017–Central Tax dated 19 June 2017, issued under Section 3 read with Section 5 of the CGST Act, 2017, appointed specified classes of officers as Central Tax Officers and vested them with powers under the CGST and IGST Acts in respect of the territories specified in the Tables annexed thereto.

However, the said notification primarily dealt with appointment and territorial jurisdiction. It did not, by itself, provide for specific assignment, entrustment or investment of functions in relation to intelligence-based investigations or specialised enforcement wings operating across jurisdictions.

Subsequently, the Central Government issued Notification No. 14/2017–Central Tax dated 1 July 2017 under Section 3 read with Section 5 of the CGST Act, 2017. By this notification, officers of the Directorate General of Goods and Services Tax Intelligence (DGGI) were assigned equivalent classes/posts corresponding to the classes of Central Tax Officers specified under Section 3.

As a result, officers of DGGI were designated as Central Tax Officers of the specified rank (such as Principal Director General, Director General, Additional Director General, Joint Director, etc.), thereby empowering them to exercise statutory powers under the CGST and IGST Acts in accordance with the authority conferred.

Thus, Notification No. 14/2017 effectively brought DGGI officers within the statutory framework of “officers of central tax,” enabling them to exercise investigative and enforcement powers under the GST law in their notified capacity.

Notification No. 02/2022 – Central Tax dated 11.03.2022

This notification amends Notification No. 02/2017–Central Tax dated 19.06.2017. Notification No. 02/2022–Central Tax introduced Paragraph 3A and Table V into the original notification framework.

“3A. Notwithstanding anything contained in paragraph 3, the Additional Commissioners or the Joint Commissioners of Central Tax, as the case may be, subordinate to the Principal Commissioners of Central Tax or the Commissioners of Central Tax, as specified in column (2) of Table V, are hereby vested with the powers as specified in the corresponding entry in Column (3) of the said Table.”

The insertion of Paragraph 3A is significant for the following reasons:

a. Non-obstante clause – The opening words “Notwithstanding anything contained in paragraph 3” clearly indicate that Paragraph 3A overrides the earlier general vesting of powers under Paragraph 3 of Notification No. 02/2017. Thus, it creates an independent and overriding source of authority.

b. Specific vesting of powers – Unlike the original notification, which broadly vested powers based on territorial jurisdiction, Paragraph 3A expressly vests specified statutory powers in Additional Commissioners or Joint Commissioners subordinate to designated Principal Commissioners/Commissioners mentioned in Table V. The vesting is not general but targeted.

c. Structured empowerment through Table V – The scope of authority is confined strictly to the powers mentioned in Column (3) of Table V, against the officers specified in Column (2). Therefore, the empowerment is controlled and conditional, rather than blanket.

Importantly, Table V provides for vesting of powers in Additional Commissioners or Joint Commissioners of Central Tax to pass orders or decisions in respect of notices issued by officers of the Directorate General of Goods and Services Tax Intelligence (DGGI).

Accordingly, Notification No. 02/2022 operationalises a specific adjudicatory framework whereby notices issued by DGGI officers are to be adjudicated by the specified rank of officers mentioned in Table V, thereby addressing jurisdictional clarity in intelligence-based investigations under the GST regime.

Therefore, in terms of Paragraph 3A read with Table V (inserted vide Notification No. 02/2022–Central Tax), the Additional Commissioner or Joint Commissioner of Central Tax, who is subordinate to the specified Principal Commissioners of Central Tax or Commissioners of Central Tax (as mentioned in Column (2) of Table V — ten such Commissionerates being specified), is vested with defined adjudicatory powers exercisable across the territory of India.

The following Commissionerates have been given All-India adjudication powers through their Additional Commissioner or Joint Commissioner of Central Tax:

The Additional Commissioner or Joint Commissioner working under these ten specified formations can pass orders or decisions in respect of notices issued by DGGI officers under the specified sections of the CGST Act, 2017.

The power conferred is not territorial in the conventional Commissionerate sense under Tables I–IV. Rather, it is a nationwide functional power linked to the nature of the notice and the issuing authority (i.e., DGGI), and not confined to district-wise jurisdiction. Specifically, such Additional Commissioner or Joint Commissioner of Central Tax is empowered to:

 ‘Pass an order or decision in respect of notices issued by the officers of the Directorate General of Goods and Services Tax Intelligence (DGGI) under Sections 67, 73, 74, 76, 122, 125, 127, 129 and 130 of the CGST Act, 2017.’

 Notification No. 27/2024 – Central Tax dated 25.11.2024

It is important to note that Notification No. 02/2017–Central Tax dated 19 June 2017 amended the original Notification No. 02/2017–Central Tax dated 19 June 2017 by inserting Table V. Through this amendment, the Additional Commissioner or Joint Commissioner working under the ten specified Principal Commissionerates were given the power to: Pass an order or decision in respect of notices issued by officers of the Directorate General of Goods and Services Tax Intelligence (DGGI) under Sections 67, 73, 74, 76, 122, 125, 127, 129 and 130 of the CGST Act, 2017.

This created a special adjudication mechanism for DGGI cases, giving these officers All-India adjudication powers for the specified sections.

Subsequently, through Notification No. 02/2017–Central Tax dated 19 June 2017, Table V was amended again. By this amendment, the earlier list of 10 specified Commissionerates was expanded to 23 Commissionerates. As a result, Additional Commissioners or Joint Commissioners working under these 23 specified Commissionerates are now empowered to adjudicate DGGI-issued notices under the specified sections of the CGST Act, 2017, across India.

In simple terms, the adjudication authority for DGGI cases has now been widened from 10 Commissionerates to 23 Commissionerates.

The following 23 Principal Commissioners / Commissioners have been given All-India adjudication powers through their Additional Commissioner or Joint Commissioner of Central Tax:

*****

Disclaimer: Nothing contained in this document is to be construed as a legal opinion or view of either of the author whatsoever and the content is to be used strictly for informational and educational purposes. While due care has been taken in preparing this article, certain mistakes and omissions may creep in. the author does not accept any liability for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon.