One Taxpayer, One Liability: Protection from Parallel GST Proceedings

AdvertisementOne Taxpayer, Two Authorities, One Liability: The Protection Against Parallel GST ProceedingsSummary: Section 6(2)(b) of the CGST Act is presented as a statutory protection against parallel adjudicatory proceedings where State/UT GST and Central GST authorities pursue the same subject matter and the same or overlapping tax liability. This raises a serious question:> Can two different GST authorities independently adjudicate the same tax liability against the same taxpayer? The answer is generally **no**, where the proceedings concern the same subject matter and seek to recover the same or overlapping tax liability. – One tax liability should not be pursued by two authorities. It applies when another authority has already initiated formal proceedings concerning the same tax liability, deficiency or obligation arising from the same contravention.