Officers under GST Law
For the purpose of execution of any statute, it is necessary to create a team of set of persons who are assigned with responsibility of compliance with such statute. Such persons are vested with various powers and duties to implement the provisions.
Similarly, Goods and Service Tax (“GST”) law also contains provisions related to appointment of officers, who will be responsible for the purpose of execution of provisions of GST law and for this purpose, they are vested with various powers.
Chapter II-Administration
Chapter II of Central Goods and Service Tax Act, 2017 (“CGST Act”) contains provisions for Administration under GST under following sections:
- Section:3-Officers under CGST Act
- Section:4- Appointment of officers
- Section: 5- Power of Officers
- Section: 6- Authorization of officers of State tax or Union territory tax as proper officer in certain circumstances.
Officers under CGST Act
Section 3 of CGST Actlays down the administrative structure or hierarchy of officers under CGST Act, which is as follows:
- Principal Chief Commissioners of Central Tax /Principal Directors General of Central Tax,
- Chief Commissioners of Central Tax / Directors General of Central Tax,
- Principal Commissioners of Central Tax /Principal Additional Directors General of Central Tax
- Commissioners of Central Tax /Additional Directors General of Central Tax
- Additional Commissioners of Central Tax /Additional Directors of Central Tax
- Joint Commissioners of Central Tax /Joint Directors of Central Tax
- Deputy Commissioners of Central Tax /Deputy Directors of Central Tax
- Assistant Commissioners of Central Tax /Assistant Directors of Central Tax
- any other class of officers as it may deem fit
Further, in pre-GST regime, indirect taxes mainly consisted Excise duty and Service Tax at central level and Value Added Tax (“VAT”) & Central Sales Taxes (“CST”) at state level. For the purpose of enforcement of provisions of these statutes, officers were appointed at central level and state level.
GST law was introduced in place of excise duty, Service Tax, VAT & CST, accordingly, officers appointed for Central Excise Act, 1944 and State act are deemed as officer under GST Law.
Officers appointed vide Notification No. 2/2017-Central Tax dated 18th June, 2017
In exercise of the power given under section 3 of CGST Act, Central Government appointed same hierarchy of central tax officer as given in section 3. However, in addition, Central Government has also notified 3 additional ranks name as:
- Commissioners of Central Tax (Audit)
- Commissioners of Central Tax (Appeals)
- Additional Commissioners of Central Tax (Appeals)
Notification No. 2/2017-central tax, issued for appointment of officers under section 3 doesn’t require to be laid down before parliament as such requirement is only limited to exemption notifications and not for designating officers.
Such notification also specified jurisdiction of principal chief commission or chief commissioner of central tax in terms of:
- Principal Commissioners/Commissioners of Central Tax
- Commissioners of Central Tax (Appeals)
- Additional Commissioner of Central Tax (Appeals)
- Commissioners of Central Tax (Audit)
An illustration to clear the position of jurisdiction is as follows:
Accordingly, as per Notification, Principal Chief Commissioner of Ahmedabad will have territorial jurisdiction over:
- Commissioner/ Principal Commissioner of Ahmedabad North, Ahmedabad South, Gandhinagar, Rajko, Bhavnagar and Gandhidham.
- Commissioner (Appeals) & Additional Commissioner (Appeals) of Ahmedabad and Rajkot.
- Commissioner (Audit) of Ahmedabad and Rajkot
Appointment of Officers (Section 4 of CGST Act)
All statutory functions can’t be performed by executive officers only; therefore, appointment of administrative staff is required for same. Section 4 of CGST Act vest Central Board of Indirect Taxes & Customs (“CBIC”) with power to appoint officers in addition to the officers specified under section 3 for the purpose of administration of CGST Act. Further, CBIC may also delegate its power of appointment of such persons to the officers specified under section 3 below the rank of Assistant Commissioner of central tax.
By virtue of the power given under section 4, CBIC has issued following circulars and notifications:
Please note that power to appoint officers under section 3 is given to Central Government. However, CBIC is authorized under section 4 for appointment of administrative staff.
Entire working team of administrative staff is known as “Field Formation”.
Section – 5 Powers of officers
Section 5 of CGST Act vest officers appointed under CGST Act with following powers:
- He may exercise such powers as given under CGST Act to discharge duties imposed on him subject to such conditions and limitations as CBIC may impose.
- An officer may exercise the powers and discharge the duties imposed on any of his subordinate.
- The Commissioner may delegate his powers to any other officer subordinate to him subject to conditions and limitations as may be specified by commissioner.
- Notwithstanding anything contained in this section, an Appellate Authority shall not exercise the powers and discharge the duties imposed on any other officer of central tax.
Section-6 : Authorisation of officers of State tax or Union territory tax as proper officer in certain circumstances
Provisions given under CGST Act are in line with provisions given under SGST/UTGST Act. Accordingly, it is necessary to avoid duplication of tax administration by officers of CGST Act and SGST/UTGST Act.
In order to avoid multiplication of action, GST law provides that officers appointed under SGST law or UTGST law are authorized to act as officers under CGST Law subject to such conditions as government may prescribe in consultation with GST Council.
If proper officer issues an order under CGST Act then he shall issue an order under SGST Act and UTGST Act under an intimation to the jurisdiction officer of state taxes or Union territory taxes.
If a proper officer initiates a proceeding under SGST Act or UTGST Act on a subject matter then he proper officer shall not initiate the proceedings on same matter under CGST Act.
Any proceedings for rectification, appeal and revision of any order passed by an officer appointed under CGST Act shall not lie before an officer appointed under SGST Act or UTGST Act.
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