CBIC Issues Circular on GST Proceedings When Taxpayers Change Jurisdiction:

CBIC Issues Circular on GST Proceedings When Taxpayers Change Jurisdiction The Central Board of Indirect Taxes and Customs (CBIC) has issued a fresh circular for the conduct of GST proceedings when a taxpayer having registration moves his principal place of business and falls under a different GST jurisdiction. The clarification is meant to clear any confusion among field officers and to ensure uniformity in the approach across the country.

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The issue was that taxpayers frequently move from one GST jurisdiction to another when they change their principal place of business. This led to questions about the validity of actions already taken by the former jurisdiction, could the former officer continue the proceedings after transfer and which officer would deal with pending cases and future legal actions. CBIC has clarified that any action or proceeding initiated by the officer having jurisdiction over the taxpayer at the relevant point of time shall continue to be valid in law even if the taxpayer moves to another jurisdiction subsequently. Change of jurisdiction shall not make such acts invalid. But after the migration of the taxpayer, the earlier jurisdictional officer cannot start any fresh proceedings or continue the proceedings. All further steps must then be processed by the officer who has jurisdiction over the taxpayer at present. The circular also says that the new jurisdictional officer will take over the case from the stage where it was pending at the time of transfer. It includes finalising of investigations, audits, adjudication, recovery proceedings, appeals or any other consequential proceedings under the CGST Act. The new officer will also be responsible for implementing earlier orders and appearing before appellate authorities or tribunals on behalf of the department, defending cases and filing appeals as and when required, said CBIC. The new jurisdiction may utilise any valid actions taken by the prior officer as if it had initiated those proceedings itself. This clarification is borne out of the legal principles laid down by the Supreme Court and various High Courts which have consistently held that if an action is taken by a competent authority in a valid manner, it continues to be enforceable even if the taxpayer changes jurisdiction. All subsequent proceedings shall be conducted by the officer having jurisdiction at the time of the proceedings.

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The CBIC has also directed that if any issue comes to the notice of the previous jurisdiction after migration of the taxpayer, it should simply inform the new jurisdictional authority and not take any action on its own. The circular issued on 25 June 2026, is expected to provide greater certainty in handling GST cases involving migration of taxpayers and help avoid jurisdictional disputes between tax authorities.