The Himachal Pradesh High Court ruled that parallel GST proceedings by Central and State authorities on the same subject matter are barred under Section 6(2)(b). Authorities must decide which body will take action regarding shared tax liabilities.
HP HC Bars Parallel GST Proceedings on Same Tax Liability
The Himachal Pradesh High Court has held that parallel proceedings by Central and State GST authorities concerning the same tax liability are prohibited under Section 6(2)(b) of the GST Act. This ruling mandates that the relevant authorities must determine which entity will pursue the matter when notices involve the same tax obligations.
The Court's decision is significant, as it seeks to avoid jurisdictional overlaps and confusion amongst taxpayers regarding which authority is responsible for tax assessments. The clarity provided by this ruling is essential to uphold the procedural integrity of tax proceedings.
Tax practitioners should advise clients to be aware of the authority designated to handle their GST matters and to ensure compliance accordingly. The ruling emphasizes organized jurisdictional coordination between Central and State authorities, thereby protecting taxpayer rights.
