Administrative Officers under the IGST Act, 2017: Powers and Functions Explained
The Integrated Goods and Services Tax (IGST) Act, 2017 forms a core pillar of India’s Goods and Services Tax framework, governing inter-state transactions. A strong administrative structure is essential to implement the law effectively and ensure smooth functioning of the GST regime.
At the heart of this administrative machinery are the Administrative Officers, who are entrusted with the responsibility to oversee implementation, enforcement, and dispute resolution under the Act. This article explores who these officers are, what powers they hold, and why they are essential in the GST framework.
Introduction to IGST and Administrative Roles
The IGST Act governs inter-State supplies, import/export of goods and services, and place of supply rules. Since IGST is levied and collected by the Central Government, the administrative officers under the Central Board of Indirect Taxes and Customs (CBIC) play a critical role.
Alongside CBIC officers, officers of the State GST departments may also exercise powers under IGST by way of authorization, making it a coordinated system between the Centre and States.
Who Are the Administrative Officers under IGST Act?
According to Section 3 of the IGST Act, 2017, the following categories of officers are appointed for administering IGST:
1. Principal Chief Commissioners of Central Tax
They are the highest-ranking officers, overseeing zonal operations and supervising all tax-related activities in their jurisdictions.
2. Chief Commissioners of Central Tax
They manage and monitor performance, legal compliance, and implementation at a regional level.
3. Principal Commissioners and Commissioners of Central Tax
They are in charge of divisions and zones and are responsible for granting registrations, approving refunds, and audits.
4. Additional Commissioners and Joint Commissioners of Central Tax
They support the Commissioners and take part in investigations, assessments, and enforcement.
5. Deputy Commissioners and Assistant Commissioners
These officers work at the operational level and deal directly with taxpayer issues such as returns, inspections, and penalties.
6. Superintendents and Inspectors
They are the ground-level officers, primarily responsible for survey, search, seizure, and verifications.
These officers are empowered under both CGST and IGST Acts, and they act as the enforcing arm of GST law.
Powers of Administrative Officers under the IGST Act
The IGST Act grants various powers to administrative officers. These powers are not arbitrary but are defined by law, with mechanisms for checks and balances.
1. Power to Issue Notices and Summons
Under Section 70 of the CGST Act, which applies to IGST by virtue of Section 20 of IGST Act, officers can issue summons to:
- Call for documents
- Require statements
- Appear before authorities
This power is essential for investigation and adjudication.
2. Power of Assessment and Scrutiny
Officers can conduct:
- Provisional Assessment under Section 60
- Scrutiny of Returns under Section 61
- Assessment of non-filers or unregistered persons
These powers help ensure that taxpayers report and pay taxes correctly.
3. Power to Search, Seize, and Arrest
Under Sections 67 to 72 of CGST Act, also applicable to IGST:
- Officers (with rank of Joint Commissioner or above) can authorize searches
- Seize goods, documents, or accounts if there is reasonable belief of evasion
- Arrest persons in case of serious frauds
These are strong enforcement tools to curb tax evasion.
4. Power to Grant Refunds
Officers have the power to process IGST refund claims related to:
- Export of goods and services
- Inverted duty structure
- Wrong payments
The system-driven refund mechanism is supervised by officers to prevent delays and fraud.
5. Power to Conduct Audits and Investigations
As per Section 65 and 66, officers are empowered to:
- Conduct departmental audits
- Authorize special audits by chartered accountants
- Analyze records, returns, and transactions
This helps uncover systemic gaps or misuse of input tax credit.
6. Power to Adjudicate Disputes
Officers can act as quasi-judicial authorities, passing orders related to:
- Tax liabilities
- Interest and penalty
- Classification of goods or services
- Place of supply disputes
Their decisions can be appealed before higher appellate authorities.
7. Power to Cancel or Suspend GST Registration
If a dealer violates any rules or provisions, officers have the authority to:
- Cancel GST registration
- Suspend registration during the process of adjudication
This ensures that non-compliant businesses do not continue to operate.
Coordinated Administration Between Centre and States
Under Section 4 of the IGST Act, officers of both the Centre and States are authorized to act under the Act. The key takeaway is:
- Central Tax Officers (CBIC) are primarily responsible for IGST administration
- State GST Officers may be authorized to perform IGST functions to ensure coordination
This cooperative model allows seamless taxpayer services and uniform interpretation of laws.
Practical Example
Let’s say XYZ Pvt. Ltd., a company in Telangana, ships products to a client in Karnataka. The transaction is inter-state and falls under IGST. The company fails to pay the correct IGST amount.
Here’s how administrative officers step in:
- Superintendent issues a show-cause notice.
- Assistant Commissioner conducts an investigation.
- Commissioner adjudicates the case.
- If fraud is found, seizure of goods or arrest may follow based on evidence.
Why Their Role is Crucial
- Ensure compliance
- Prevent revenue leakage
- Resolve disputes promptly
- Maintain uniform application of tax laws
- Enable digital, transparent, and faceless operations
Mnemonic :
Mnemonic to Remember Powers of IGST Officers: “SARA-AIR”
| Letter | Power | Description |
|---|---|---|
| S | Search & Seizure | Conduct inspections and seize documents |
| A | Assessment | Provisional and scrutiny-based |
| R | Refunds | Grant IGST refunds for exports, etc. |
| A | Arrest | For serious fraud under GST |
| A | Adjudication | Quasi-judicial powers |
| I | Investigation | Through audits and analysis |
| R | Registration Control | Cancel/suspend GST registration |
