CBIC Issues Clarification on Review and Appeal Authority in DGGI-Handled GST Cases

CBIC Issues Clarification on Review and Appeal Authority in DGGI-Handled GST Cases

The Central Board of Indirect Taxes and Customs (CBIC) has issued a new GST circular [No. 250/07/2025-GST] dated June 24, 2025, to bring clarity to an important issue regarding cases managed by the Directorate General of GST Intelligence (DGGI). These cases violate serious GST rules, and their final decisions are taken by special officers known as Common Adjudicating Authorities (CAAs). Roles of CAAs were previously defined in Notification No. 02/2017-Central Tax dated June 19, 2017, and Circular No. 239/33/2024-GST.

Previously, the central government issued a circular outlining how these authorities are appointed and which areas come under these authorities. However, the circular did not clearly mention who will review the orders passed by CAAs, who will handle appeals if someone challenges these orders, and who can revise these orders if needed. This created confusion among officers and taxpayers. The newly released circular mentions all this missing information.

The Central Board of Indirect Taxes and Customs (CBIC) consulted the Ministry of Law and Justice, and on the basis of legal advice and GST laws (mainly Sections 107 and 108 of the CGST Act, 2017), the circular now clearly mentions who does what.

Here are the key clarifications:

1. Review of Orders (Section 107)

• The Principal Commissioner or Commissioner of Central Tax, under whom the CAA works, will now be the authority to review any order issued by the Common Adjudicating Authority (CAA). This review assists in verifying whether the decision taken is as per legal rules or needs to be challenged by the department.

2. Revision of Orders (Section 108)

• The same Principal Commissioner or Commissioner of Central Tax, under whom the CAA works, will also act as the revisional authority. Meaning, they have the authority to update the order if they discover legal mistakes or irregularities in it. This specification is in support of the previous notification (No. 05/2020), which already gave these officers the authority to update orders passed by their subordinate officers.

3. Appeals Against the Order

• If, in case, taxpayers or the department want to challenge the decision of CAA, then that raised appeal will be listed by the Commissioner (Appeals) of the area where the CAA is posted.
• This is to make sure that the appeal is being handled by someone Commissioner (Appeals) of the area where the CAA is posted.

4. Who Represents the Department in Appeals?

• If, in case the department itself wants to file an appeal or respond to the appeal of the taxpayer, the responsibility lies with the Principal Commissioner or Commissioner of Central Tax, under whom the CAA works. A junior officer can also be appointed by the commissioner to represent the department in court.

5. Input from DGGI Can Be Taken

• The Principal Commissioner or Commissioner of Central Tax, under whom the CAA works, is also permitted to ask DGGI (who originally investigated and issued the notice) for comments or input before reviewing or updating an order. This is to understand the background of the case properly.

All GST Commissionerates are recommended to issue trade notices to inform taxpayers and officers about this new procedure. If there are any difficulties in following these instructions, they should be reported to the CBIC.

Refer to the official notification for more related information.