The Central Board of Indirect Taxes and Customs (CBIC) on June 25, 2026, issued the Clarification regarding jurisdiction in cases involving migration/ transfer of taxable persons from one jurisdiction to another jurisdiction.
The following has been stated:
• It has clarified the procedure to be followed under the CGST Act, 2017, when a registered taxpayer's jurisdiction changes due to a change in its principal place of business. The circular provides that any action or proceeding (such as investigation, audit, issuance of show cause notice, adjudication, review, appeal, or other proceedings) validly initiated by the transferor jurisdictional officer before the taxpayer's migration shall continue to remain legally valid even after the change in jurisdiction.
• However, once the taxpayer has migrated, the transferee jurisdictional officer alone will be responsible for carrying forward, implementing and concluding all subsequent stages of the proceedings, including enforcement of earlier orders, consequential actions, representation before appellate authorities or tribunals, and filing of appeals.
• The transferor jurisdictional officer shall not initiate any fresh action after the migration of the taxpayer and shall instead communicate any new issues to the transferee authority for appropriate action.
• The clarification aims to ensure continuity of proceedings, avoid jurisdictional disputes, and provide uniformity in the handling of cases involving the transfer of taxpayers between GST jurisdictions.
[Circular No. 255/01/2026-GST]
