Monetary Limit for issuance of SCN

Hey Pardeep! About your query on the monetary limit for issuance of Show Cause Notice (SCN) involving CGST and IGST amounts:

Can a CGST Superintendent issue a SCN involving ₹15,00,000 CGST + ₹5,00,000 IGST together?

Short Answer:
No, generally the monetary jurisdiction limits for officers are fixed and depend on the value of tax involved and the rank of the officer.

Details:

• The power to issue SCN under CGST Act is delegated as per notifications issued by the government from time to time.

• Typically, Superintendent officers have a monetary limit on the value of tax or demand they can handle.

• For example, as per Notification No. 52/2018 – Central Tax dated 13-09-2018 and subsequent circulars:

  • A Superintendent of CGST is usually empowered to issue SCNs where the tax involved is up to ₹10 lakhs.

  • Demands exceeding that limit require approval or issuance by higher authorities like Joint Commissioner or Additional Commissioner.

• Also, SCN involving both CGST and IGST would typically be issued by the appropriate authority based on jurisdiction and limit.

So:

• A single SCN involving ₹15 lakhs CGST alone exceeds the typical superintendent limit.

• Adding ₹5 lakhs IGST on top makes the total demand ₹20 lakhs.

• This case should be handled or approved by an officer of higher rank than Superintendent, e.g., Joint Commissioner or Additional Commissioner.

Suggestion:

If you receive such SCN issued by Superintendent for an amount exceeding their jurisdiction, you can question the competency of issuing authority based on delegation limits.