Kerala GST Department Notifies Pecuniary Limit for Implementation of Section 74A of the SGST Act:

Kerala GST Department Notifies Pecuniary Limit for Implementation of Section 74A of the SGST Act The Kerala State Goods and Services Tax Department has recently issued an official circular Number 10/2025, which will be made effective instantly, describing the financial limits for the proper officers concerning to the issuance of notices and orders under the recently launched Section 74A under the SGST Act, CGST Act and IGST Act. This circular changes Circular No. 06/2023 to add limits under Section 74A. It sets different limits based on the total amount of tax involved (not including penalty or interest). For example, Deputy or Assistant Tax Officers can handle cases involving up to Rs. 2 lakhs, while Joint Commissioners have no limit. 1. A new section called Section 74A was added to the Central Goods and Services Tax (CGST) Act, 2017, by the Central Finance (No.2) Act, 2024. This section deals with cases where tax has not been paid, is underpaid, has been wrongly refunded, or where input tax credit has been wrongly claimed or used, starting from the financial year 2024-25. The Kerala Taxation Laws Act 2024 also made similar amendments to the Kerala GST Act. 2. To make the adjudication process, i.e., handling of tax disputes and decisions under the KSGST, CGST, and IGST Acts smoother, directions were earlier issued under Section 168 of the KSGST Act. These instructions set monetary limits for issuing notices and adjudication orders under Sections 73 and 74 of these Acts. 3. Now, similar monetary limits are being proposed for issuing notices and adjudication orders under the newly added Section 74A of the KSGST, CGST, and IGST Acts. 4. To put these limits in place for Section 74A, Circular No. 06/2023 dated 08/01/2023 is being updated accordingly.

Sl. No.	Officer of the State Tax	Monetary Limit
1	Deputy State Tax Officer / Assistant Tax Officer	Up to Rs. 2 lakhs
2	Assistant Commissioner of State Tax / State Tax Officer	Up to Rs. 50 lakhs
3	Deputy Commissioner of State Tax	Up to Rs. 5 crores
4	Joint Commissioner of State Tax	No limit