The Government of Tamil Nadu, through the Office of the Commissioner of State Tax, has issued Circular No. 04/2026 dated 22nd April 2026 introducing important modifications in the adjudication mechanism relating to Large Taxpayers Unit (LTU) taxpayers inspected by the Intelligence Wing under the Tamil Nadu Goods and Services Tax Act, 2017.
The circular has been issued with the objective of ensuring administrative efficiency, ease of doing business, and streamlined adjudication proceedings for LTU taxpayers across the State.
Background
Earlier instructions governing adjudication powers and procedures were issued vide:
- Circular No. 13/2022-TNGST dated 08.11.2022
- Circular No. 11/2023 dated 27.05.2023
- Circular No. 13/2023 dated 01.10.2023
Subsequently, vide Proceedings No. R1/13066475/2026 dated 06.02.2026, the number of taxpayers under the Large Taxpayers Unit (LTU), Chennai, was expanded from 74 to 124 taxpayers through restructuring and reallocation of taxpayers from various divisions.
Key Clarification Issued
The circular clarifies that adjudication proceedings under Sections 73, 74 and 74A of the GST Acts relating to LTU taxpayers shall lie with the Proper Officer, namely the Deputy Commissioner (LTU).
Previously, in cases where LTU taxpayers were inspected by officers of the Intelligence Wing, adjudication responsibilities were being exercised by Assistant Commissioners or State Tax Officers depending upon the revenue effect, as per earlier circulars.
To ensure uniformity and improve taxpayer convenience, the Government has now decided that adjudication in all such cases shall also be undertaken exclusively by the concerned Deputy Commissioner (LTU).
Major Directions Issued
[1] Transfer of Adjudication Proceedings
The Intelligence Wing shall transfer adjudication responsibilities to the concerned Deputy Commissioner (LTU) immediately after issuance of GST DRC-01A along with all connected records.
[2] Pending Cases Also Covered
In cases where GST DRC-01 notices or personal hearing notices have already been issued by the Intelligence Wing and proceedings are still pending as on the date of the circular, such adjudication tasks shall also be transferred to the respective Deputy Commissioner (LTU).
[3] Mandatory Taxpayer Intimation
The Intelligence Wing Officer shall intimate the registered taxpayer through official e-mail communication informing that further adjudication proceedings will be undertaken by the concerned Deputy Commissioner (LTU).
[4] Responsibility of Officers
The Joint Commissioner (Intelligence) has been directed to ensure immediate transfer of records and adjudication responsibilities.
Further, the Additional Commissioner (Systems) shall facilitate system-level transfer of DRC-01A/DRC-01 proceedings from the Intelligence Division to the Deputy Commissioner (LTU).
Objective of the Reform
The modification has been introduced as part of the Government’s continuous efforts towards:
- Ease of Doing Business
- Administrative consistency
- Faster adjudication
- Single-point interface for LTU taxpayers
- Improved coordination between Intelligence and LTU formations
The Government expects that centralized adjudication through LTU authorities will enhance procedural efficiency and reduce compliance complexities for large taxpayers.
Immediate Effect
The circular comes into force with immediate effect across the State.
The Circular can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/04/Tamil-Nadu-Circular-No.-04_2026-LTU-taxpayers-Instruction-regarding-adjudication-in-respect-of-LTU-taxpayers-inspected-by-the-Intelligence-Wing.pdf
