New GST jurisdiction to handle pending cases after business shift: CBIC

Business To Business, New Delhi, 27^th June, 2026:   The Central Board of Indirect Taxes and Customs has clarified that when a registered taxpayer shifts or transfers its principal place of business from one tax jurisdiction to another, the new jurisdictional authority will assume responsibility for all pending proceedings relating to that taxpayer.
In a circular, the CBIC said that any action or proceeding—including investigations, audits, issuance of show cause notices and adjudication under the Central Goods and Services Tax (CGST) law—initiated by the tax officer who had jurisdiction over the taxpayer at the time the action was taken will remain legally valid even if the taxpayer subsequently moves to another tax jurisdiction.
The board explained that the tax authority in the new jurisdiction, referred to as the transferee jurisdictional authority, will continue all pending proceedings based on the actions already initiated by the previous 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 clarification is intended to ensure continuity in GST administration and prevent legal or procedural disruptions when businesses relocate their principal place of business from one tax jurisdiction to another.
The circular provides greater certainty for taxpayers and tax authorities by confirming that jurisdictional changes will not invalidate ongoing proceedings or require them to be restarted.