New GST jurisdiction to handle pending cases after business shift: CBIC

New Delhi, The Central Board of Indirect Taxes and Customs (CBIC) has said that when a registered taxpayer shifts or transfers its principal place of business from one tax jurisdiction to another, the new jurisdictional authority will take over and handle all pending proceedings related to the taxpayer.

Any action or proceeding like investigation, audit, show cause notice, adjudication under the Central GST law undertaken by the tax officer having jurisdiction over the registered taxpayer on the date such action was undertaken (transferor jurisdictional authority), would remain valid even if the taxpayer subsequently shifts to another tax jurisdiction (transferee jurisdictional authority).

"The transferee jurisdictional authority shall act upon, give effect to, and proceed on the basis of such earlier valid action taken by the transferor jurisdictional authority, as if it had itself initiated the same," the CBIC said in a circular.


The indirect tax board said that it had received references from field formations seeking clarification on the validity of action taken, and on the authority competent to act, in cases where a registered taxpayer's jurisdiction has changed due to a change in the principal place of business.

It further said if any fresh issue comes to the notice of the earlier jurisdictional authority after the taxpayer has shifted to a new jurisdiction, the tax officer should "intimate" it to the new jurisdictional officer for further action.

"Where the taxable person migrates to another jurisdiction during the pendency of any action or proceeding initiated by the transferor jurisdictional authority, the transferee jurisdictional authority shall take over and conclude the same from the stage at which it stood at the time of migration/ transfer," the CBIC circular said.

The new jurisdictional officer will also have the authority to initiate and conclude any consequential proceedings arising from the case, it added.

AMRG Global Managing Partner Rajat Mohan said the clarification fills an important procedural gap under GST and is expected to bring greater consistency in handling cases involving the migration of taxpayers.

"By clearly defining the responsibilities of transferor and transferee authorities, CBIC has removed ambiguity that often resulted in jurisdictional objections and delays in adjudication," Mohan added.