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Proper Officer Function

The circular outlines the assignment of proper officer functions related to scrutiny, assessment, detention, seizure, release, and refund under the Kerala State Goods and Services Tax Act, 2017. It emphasizes the need for timely scrutiny of monthly returns to reduce accumulated defects and streamline adjudication processes by reallocating responsibilities between intelligence and assessment verticals. Additionally, it establishes guidelines for adjudication limits based on the monetary value of tax disputes and mandates effective processing of refund applications.

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14 views7 pages

Proper Officer Function

The circular outlines the assignment of proper officer functions related to scrutiny, assessment, detention, seizure, release, and refund under the Kerala State Goods and Services Tax Act, 2017. It emphasizes the need for timely scrutiny of monthly returns to reduce accumulated defects and streamline adjudication processes by reallocating responsibilities between intelligence and assessment verticals. Additionally, it establishes guidelines for adjudication limits based on the monetary value of tax disputes and mandates effective processing of refund applications.

Uploaded by

nikhil.siv123
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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File No.

CT/7533/2021-C1

Office of the Commissioner of State Goods and Services Tax


Department, Government of Kerala, Thiruvananthapuram

No. CT/7533/2021-C1
Dated 07/11/2021

Circular No.6/2021

Sub:- Proper officer functions - scrutiny, assessment, detention,


seizure, release and refund– reg.
Ref: Report of the committee constituted by the Commissioner
of State GST as per Order No. CT/6453/2021-C3
dated 08.09.2021 & 09-09-2021

I. In exercise of the powers conferred by Clause (91) of section 2 read


with sub-section (1) of section 5 of the Kerala State Goods and Services
Tax Act, 2017 (20 of 2017) (hereinafter referred to as the Act) and subject
to subsection (2) of section 5 of the said Act, and in partial modification
of proceedings No. GSTC/24614/2017/CT, dated 06/07/2017 of the
Commissioner, the Commissioner of State Tax, hereby assigns the officers
mentioned in Column (2) of the Table below, the functions as the proper
officers in relation to the various sections of the Kerala State Goods and
Services Tax Act, 2017 or the rules made thereunder given in the
corresponding entry in Column (3) of the said Table:-
File No.CT/7533/2021-C1

Table
Sl. Designation of the Functions assigned under the
No. Officer following sections of the Kerala
State Goods and Services Tax Act,
2017 and the rules made
thereunder.
(1) (2) (3)
1 Assistant State 1. Sub-sections (1) and (3) of
Tax Officer Section 61
2. Sub-section (1) of section 62
3. Section 63
4. Sub-section (1), (2), (3), (5), (6),
(7), (9) and (10) of section 73
Rules
1. Sub-rules (1), (2), and (3) of
rule 99
2. Sub-rule (2) of rule 100
3. Sub-rules (1), (2), (3) and (7) of
rule 142

In light of sub-section (2) of section 5 of the Kerala State Goods


and Services Tax Act, an officer of state tax may exercise the powers and
discharge the duties conferred or imposed under the Kerala State Goods
and Services Tax Act on any other officer of state tax who is subordinate
to him.
In order to streamline the procedures with respect to scrutiny,
assessment, detention, the release of Goods/conveyance, and Refund, the
following guidelines are issued.

Different paras of this Circular shall come into force on such date
as the Commissioner of State Tax may, by Circular, appoint.
File No.CT/7533/2021-C1

II. Scrutiny of Returns

1. Presently, the scrutiny of annual returns for the year 2017-18 is

being done. Since defect notices are given after a larger time span,
the defects perpetually get accumulated. The dealers will find it
challenging to remit the consequent taxes, penalties, and interest
being substantially larger amounts. The tax compliance mechanism
will thus get much complicated, and the dealers forced to pursue
long-driven litigation.

2. If the monthly returns filed by the dealers are verified monthly, and

errors immediately brought to their notice, the dealers can rectify


those defects through their next return itself. The dealers would
rather see it as an opportunity to rectify their defects since the
pecuniary consequences for monthly returns would be much lesser
than pecuniary consequences of accumulated defects detected in
annual return scrutiny. To make it more effective, maximum risk-
based monthly scrutiny shall be carried out by the concerned
vertical.
3. Since the monthly return scrutiny is rather concerned about the

mathematical accuracy and other technical aspects of that monthly


return, the officers in the cadre of Assistant State Tax Officers are
also assigned with the functions of scrutiny of monthly return.
4. The Assistant Commissioner or State Tax Officer in charge of an

office shall assign the monthly returns that are to be scrutinised by


Assistant State Tax Officer based on the availability of Assistant
State Officer in that office.
File No.CT/7533/2021-C1

III. Shifting of adjudication from Intelligence/Audit wing to assessment


(taxpayer services and dispute resolution) vertical

1. At present, notices issued by the intelligence and audit wing are

being adjudicated by the same verticals. As a result, the intelligence


and audit systems have shifted from their core functions to
adjudication, appellate proceedings, court proceedings and arrears
recovery. This affects the professionalism of intelligence and audit
systems.

2. The above problems will come to an end when the notices issued by

the Intelligence vertical are adjudicated by the assessment verticals


since this is part of their main function.

3. Henceforth all the show cause notice issued by the Proper Officer

belonging to the Intelligence formation shall be transferred to the


officer belonging to the respective jurisdictional assessment (taxpayer
services and dispute resolution) vertical.

4. The annual return scrutiny shall be done exclusively by the Audit

wing and the show cause notice issued by Audit wing shall also be
transferred to the officer belonging to the respective jurisdictional
assessment (taxpayer services and dispute resolution) vertical.

5. The GST Info shall make necessary arrangements for the


implementation of such transmission.
File No.CT/7533/2021-C1

IV. Adjudication under Section 73/74

1. In the present system, the issuance of notices to the taxpayer


demanding tax amount and completing adjudication are not on the
basis of the quantum of disputed tax amount. This will lead to the
situation that adjudication of high tax amount cases will be done by
the junior officer.
2. Hence it is decided that the adjudication system shall be rearranged in

such a way that the adjudication of higher tax amounts shall be done
by the senior officers.
3. It has also been decided that Assistant State Tax Officers shall also be

assigned with the functions of issuance of show cause notices and


orders under section 73 of the Kerala State Goods and Services Tax Act,
2017 and IGST Act, 2017 based on pecuniary jurisdiction of tax amount
involved as detailed below. The Joint Commissioners of State Tax shall
reallocate adjudications within the officers under their administrative
control so as to optimize utilization of available human resources.

Pecuniary limits in respect of adjudication u/s 73 of the KSGST Act, 2017


and IGST Act, 2017
Sl. Officer of the State Monetary limit of the amount of SGST (including
No. Tax cesses)/IGST (including cesses) not paid or short
paid or erroneously refunded or input tax credit
of state tax wrongly availed or utilized for
issuance of show cause notices and passing of
orders under section 73 of KSGST Act/IGST Act.
1 Assistant State Tax Not exceeding Rs. 2 lakhs
Officer
2 State Tax Officer/ Above Rs. 2 lakhs without any limit
Assistant Commissioner
/Deputy Commissioner
File No.CT/7533/2021-C1

4. The adjudication of notices issued u/s 74 of the Kerala SGST


Act/IGST Act shall be done by the officers in the cadre of State Tax
Officer /Assistant Commissioner/ Deputy Commissioner.

V. Issue of Notices and Adjudication under Section 129 and 130

1. The notice under Section 129 of the KSGST / CGST / IGST Act,
2017, shall be issued by the Assistant State Tax Officer, but the
adjudication of the notices under section 129 shall be done by the
Assistant State Tax Officer and State Tax Officer based on pecuniary
jurisdiction of tax amount involved as detailed in the table below.

Table
Pecuniary limits Authority
Tax or penalty under section (1) Assistant State Tax Officer
of section 129 is upto Rs.2 lakhs

Tax or penalty under section (1) of State Tax Officer/ Assistant


section 129 is above Rs. 2 lakhs. Commissioner

VI. REFUNDS

The refund application shall be settled in an effective & time-bound


manner. The existing practice of processing the refund applications by the
respective jurisdictional authority needs to be continued. But taking into
consideration the time-limit aspects, a post-audit of refunds must be done.
The pre-audit verification, if any done, must be limited to mere
File No.CT/7533/2021-C1

arithmetic verification, and the legal aspects can be taken up in post-


audit.

Para I, Para II (Scrutiny of Returns), Para IV (Adjudication under


Section 73/74) and Para V of this circular shall come into force at once.

Sd/-
COMMISSIONER

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