The Kerala State Goods and Services Tax Department issued Circular No. 10/2025, effective immediately, prescribing pecuniary limits for Proper Officers regarding the issuance of notices and adjudication orders under the newly inserted Section 74A of the SGST Act, CGST Act, and IGST Act. These limits, based on the aggregate amount of tax not paid/short paid/erroneously refunded or ITC wrongly availed/utilized (excluding penalty/interest), range from up to two lakhs for Deputy/Assistant Tax Officers to no limit for Joint Commissioners. This circular amends Circular No. 06/2023 to include these limits for Section 74A.
Government of Kerala
Office of the Commissioner of the State Goods and Services Tax Department, Tax Towers, Karamana, Thiruvananthapuram — 695002
SGST Policy Division
E-mail: cstpolicy.sgst@kerala.gov.in
Ph: 04712785276
File No. SGST/1954/2025-PLC6
Circular No. 10/2025-Kerala SGST Date : 05-04-2025
Sub:- SGSTD- Implementation of Section 74A of the SGST Act Pecuniary limit to the Proper Officers- instructions -issued- reg
Circular No.06/2023 dated 08.01.2023 of the Commissioner of State Taxes, Kerala
1. As per the Central Finance (No.2) Act 2024, a new section, Determination of tax not paid or short paid or erroneously refunded or input 207 tax credit wrongly availed or utilised for any re2son pertaining to Financial Year 2024-25 onwards; , was inserted in the Central Goods and Services Tax Act, 2017 after section 74 of the Act and the corresponding changes were made in the KSGST Act, 2017 through the sub-section (27) of Section 3 of the Kerala Taxation Laws (Amendment) Act 2024 (Act 28 of 2024).
2. To streamline the procedures with respect to adjudication under the Kerala State/Central Goods and Services Tax Act, 2017, and the Integrated Goods and Services Act, 2017, in exercise of the po ers conferred under Section 168 of the Kerala State Goods and Se ices Tax Act, 2017 (hereinafter referred to as “KSGST Act”), instruct ors were issued to the field formations by fixing pecuniary limit for the issuance of notices and for issuance of adjudication orders u der sections 73 and 74 of the KSGST Act, CGST Act and corresponds ing provision of IGST Act.
3. It is now proposed to prescribe similar pecuniary limits for the issue of notices and adjudication orders under section 74A of the KS I, ST Act, CGST Act and corresponding provisions of IGST Act.
4. To assign the pecuniary limit with respect to adjudication under Section on 74A of the Act, Circular No. 06/2023, dated 08/01/2023, referred above, stands amended as under.
5. In the circular,
i. In para 1, after the TABLE-2, the following Table shall be inserted, namely,-
TABLE-3
Pecuniary limits in respect of adjudication u/s 74A of the KSGST Act, 2017, CGST Act, 2017, and IGST Act, 2017.
| SI.
No |
Officer of the
State Tax |
The monetary limit of the aggregate amount of SGST, CGST, IGST and cesses if any, not paid, short-paid, or erroneously refunded, or input tax credit wrongly availed of, or utilised, for the issuance of show cause notices and passing of orders under section 74A of the KSGST Act, 2017, CGST Act, 2017, and IGST Act, 2017 |
| 1. | Deputy State Tax Officer/ Assistant Tax Officer |
Up to rupees two lakhs |
| 2. | Assistant Commissioner of State Tax/ State Tax Officer | Up to rupees fifty Lakhs |
| 3. | Deputy Commissioner of State Tax | Up to rupees Five Crores |
| 4. | Joint Commissioner of State Tax | No limit |
Note:- For the purpose of calculation of the amount of monetary limit, the penalty or interest need not be reckoned.
ii. In para 4, after the figures, word and symbols “73(5) or 74(5)”, the words, symbols and figures “or 74A(8)(i) or 74A (9)(i)” shall be inserted.
6. This circular shall come into force at once
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