Businesses shifting their principal place of business to a new GST jurisdiction will not have to restart pending tax proceedings, with the Central Board of Indirect Taxes and Customs (CBIC) clarifying that the new jurisdictional authority will take over and complete all ongoing cases from the stage at which they were left, reported PTI.The clarification comes after the CBIC received references from field formations seeking guidance on the validity of proceedings and the authority responsible for handling cases when a registered taxpayer changes jurisdiction because of a shift in its principal place of business.Under the circular, any action or proceeding — including investigation, audit, show cause notice or adjudication under the Central GST law — initiated by the tax officer having jurisdiction over the registered taxpayer at the time the action was undertaken (transferor jurisdictional authority) will remain valid even if the taxpayer subsequently shifts to another tax jurisdiction (transferee jurisdictional authority).“The transferee jurisdictional authority shall act upon, give effect to, and proceed on the basis of such earlier valid action taken by the transferor jurisdictional authority, as if it had itself initiated the same,” the CBIC said in the circular.The indirect tax board further clarified that if any fresh issue comes to the notice of the earlier jurisdictional authority after the taxpayer has shifted, the tax officer should intimate the new jurisdictional officer for appropriate action.“Where the taxable person migrates to another jurisdiction during the pendency of any action or proceeding initiated by the transferor jurisdictional authority, the transferee jurisdictional authority shall take over and conclude the same from the stage at which it stood at the time of migration/ transfer,” the CBIC circular said.The new jurisdictional officer will also have the authority to initiate and conclude any consequential proceedings arising from the case.Rajat Mohan, Managing Partner at AMRG Global, said the clarification addresses a key procedural gap under the GST regime.“By clearly defining the responsibilities of transferor and transferee authorities, CBIC has removed ambiguity that often resulted in jurisdictional objections and delays in adjudication,” Mohan said.
