To provide faster dispute resolution, the Central Board of Indirect Taxes & Customs (CBIC) has developed a detailed mechanism for reviewing, revising, and appealing adjudicating orders in show-cause notices issued by the Directorate General of GST Intelligence (DGGI). Experts feel such a mechanism will mainly help banking, insurance, online gaming, real estate, e-commerce, hospitality, FMCG, and logistics resolve GST disputes.

A circular issued by CBIC said that the mechanism aims “to ensure uniformity in the procedure for review, revision, and appeal against the Orders-in-Original (O-I-Os) adjudicated by Common Adjudicating Authorities.” According to Rajat Mohan, Senior Partner at AMRG & Associates, over the past few years, the Directorate General of GST Intelligence (DGGI) has significantly widened the scope of its investigations, targeting sectors with complex supply chains, digital business models, or aggressive tax positions. These include banking, insurance, online gaming, real estate, e-commerce, hospitality, FMCG, and logistics—each facing large-scale scrutiny involving multi-jurisdictional transactions and intricate valuation issues.

Principal commissioner named as reviewing authority

“While such investigations are essential for preserving the integrity of the GST regime, they have often resulted in procedural uncertainty for taxpayers, especially when show cause notices were adjudicated by Common Adjudicating Authorities (CAAs) without clarity on the appellate or revisional process. This created delays in legal remedy, compliance fatigue, and a risk of double jeopardy in cases spanning multiple states,” he said.

Now, the circular prescribes the Principal Commissioner or Commissioner of Central Tax under whom the Common Adjudicating Authority (Additional/ Joint Commissioner) is posted shall be the reviewing authority regarding O-I-Os. An appeal can be made before the Commissioner (Appeals). The review and appeal process will be carried out under Section 107 of the CGST Act, which empowers any aggrieved party to appeal within three months of the decision.

Section 108 of the CGST Act prescribes that a Revisional Authority can review any GST-related decision or order made by a subordinate officer if it thinks it is wrong and negatively affects government revenue. The circular says designates the Principal Commissioner or Commissioner of Central Tax under whom the Common Adjudicating Authority (Additional/ Joint Commissioner) is posted as the Revisional Authority.

Relief for sectors under DGGI scrutiny

“The reviewing or revisional authority for such orders may seek comments on the O-I-O from the concerned DGGI formation before proceeding to decide on the order passed by the CAA,” the circular said.

According to experts, this circular provides long-awaited relief by clearly designating the appropriate reviewing, revisional, and appellate authorities based on the CAA’s territorial posting. For taxpayers, this brings predictability, faster dispute resolution, and procedural safeguards—particularly relevant in recent high-stakes investigations involving fake ITC networks, offshore gaming portals, and shell-company-linked financial frauds.

“This structural reform is a step toward restoring trust and balance in the enforcement process and is likely to significantly reduce litigation arising from technical jurisdictional errors. It also improves confidence among compliant businesses, especially in sectors that are under sustained regulatory watch,” Mohan concluded.

Published on June 25, 2025