Allahabad HC to State GST Department: Avoid Action Against Assessee If Central GST Has Already Acted for the Same Assessment Years

The Allahabad High Court rendered the State Goods and Service Tax Authorities to not take action towards any assessment year in which the Central Goods and Service Tax Authorities have taken action earlier.

The applicant has approached the HC under Article 226 of the Constitution of India against the measures taken via the State and Central GST Authorities for the same assessment year, 2017-18. It was asserted that once the state GST authorities have finished the assessment proceedings u/s 74, then the central GST authorities cannot issue notice for the assessment year.

It marked that for the matter of the applicant, the assessment proceedings for all assessment years were performed via the central GST authorities. It was merely for the year 2017-18 that the state authorities performed and finished the proceedings.

Therefore the court asked the central GST authorities to carry on their proceedings towards any assessment year instead of AY 2017-18.

The bench of Justice Shekhar B. Saraf and Justice Vipin Chandra Dixit rendered that

“The State GST is accordingly directed not to take any action for the years in which Central GST has already taken action.”

The writ petition was disposed of consequently.