The Kerala GST Department issued Circular No. 10/2025-Kerala SGST dated April 05, 2025, to implement Section 74A of the SGST Act, which deals with tax not paid or short paid for Financial Year 2024-25 onwards. This circular amends Circular No. 06/2023 dated January 08, 2023, by adding Table-3 to set pecuniary limits for issuing notices and adjudication orders under Section 74A. The limits range from up to two lakhs for Deputy State Tax Officers to no limit for Joint Commissioners.
As per the Central Finance (No.2) Act 2024, a new section, “74A. Determination of tax not paid or short paid or erroneously refunded or input 207 tax credit wrongly availed or utilised for any reason pertaining to Financial Year 2024-25 onwards;, was inserted in the Central Goods and Services Tax Act, 2017 after section 74 of the Act and the corresponding changes were made in the KSGST Act, 2017 through the sub-section (27) of Section 3 of the Kerala Taxation Laws (Amendment) Act 2024 (Act 28 of 2024).
To streamline the procedures with respect to adjudication under the Kerala State/Central Goods and Services Tax Act, 2017, and the Integrated Goods and Services Act, 2017, in exercise of the powers conferred under Section 168 of the Kerala State Goods and Services Tax Act, 2017 (hereinafter referred to as “KSGST Act”), instructions were issued to the field formations by fixing pecuniary limit for the issuance of notices and for issuance of adjudication orders under sections 73 and 74 of the KSGST Act, CGST Act and corresponding provision of IGST Act.
It is now proposed to prescribe similar pecuniary limits for the issuance of notices and adjudication orders under section 74A of the KSGST Act, CGST Act and corresponding provisions of IGST Act.
To assign the pecuniary limit with respect to adjudication under Section 74A of the Act, Circular No. 06/2023, dated 08/01/2023, referred above, stands amended as under.
In the circular,
In para 1, after the TABLE-2, the following Table shall be inserted, namely, –
TABLE-3
Pecuniary limits in respect of adjudication u/s 74A of the KSGST Act, 2017, CGST Act, 2017, and IGST Act, 2017.
| Sl. No. | Officer of the State Tax |
The monetary limit of the aggregate amount of SGST, CGST, IGST and cesses if any, not paid, short-paid, or erroneously refunded, or input tax credit wrongly availed of, or utilised, for the issuance of show cause notices and passing of orders under section 74A of the KSGST Act, 2017, CGST Act, 2017, and IGST Act, 2017 |
| 1. | Deputy State Tax Officer/ Assistant Tax Officer | Up to rupees two lakhs |
| 2. | Assistant Commissioner of State Tax/ State Tax Officer | Up to rupees fifty Lakhs |
| 3. | Deputy Commissioner of State Tax | Up to rupees Five Crores |
| 4. | Joint Commissioner of State Tax | No limit |
Note: – For the purpose of calculation of the amount of monetary limit, the penalty or interest need not be reckoned.
In para 4, after the figures, word and symbols “73(5) or 74(5)”, the words, symbols and figures “or 74A(8)(i) or 74A(9)(i)” shall be inserted.
The Circular can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/04/Circular_No_10_2025_SGST.pdf
