In a case of resistance of the authority of the Center on GST matters, the Maharashtra government has decided that the state will have the final say in the applicability of the circulars defining the rules on indirect tax issues.
A circular dated January 12 issued by the Maharashtra Goods and Service Tax Department (MGSTD) clarifies that the state will examine all the circulars issued by the Central Board of Indirect Taxes and Customs (CBIC), and after scrutiny, will issue a separate GST circular/orders by Govt 
Along with the decision, the state removed the circular number. 39 T released in 2019 which has been provided by MGSTD for the adoption of all circulars issued by CBIC. However, the state said that all the circulars issued by the center till this removal of the circular will be in status quo and will be approved for the implementation of the MGST Act. This means that the state will have the flexibility to formulate rules to suit its interests rather than following central circulars.
After the introduction of GST, This is the second major resistance states imposed on the implementation of GST laws. The first one was when the states opposed the Centre’s movement on GST compensation and forced it to frame regulations that protected their interest.
Rajat Mohan, senior partner, AMRG and Associates said in the matter that “Biggest fears of model code for a federal democratic country like India are coming true even before the completion of its 4th anniversary of GST. Fight between the Centre and states over compensation for loss has already reached judiciary, and now the state government of Maharashtra has also issued clear instructions that they will have parallel set clarifications on same matters which will supersede the clarifications issued by the Central government,”.
To justify its move, the Maharashtra government said that their decision will maintain the integrity of communication and remove any confusing element for which circular instructions are needed to be followed.
However, sources said that it has been done on the basis of several matters, the states had a different view of how things should be implemented. Furthermore, unique nature operational issues in the state are also creating difficulties in auto-adopting central regulations. Meanwhile, sources reflected their concern that this move by Maharashtra will weaken the procedure of decisions being implanted unanimously by the GST law council 
