CROSS EMPOWERMENT OF OFFICERS OF STATE AND CENTRAL GOVERNMENT UNDER GST - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

20. CROSS EMPOWERMENT OF OFFICERS OF STATE AND CENTRAL GOVERNMENT UNDER GST 20.1 GST is levied concurrently by the Centre as well as the States on supply of goods and/or services. Tax Administration authority is with the Central Government officials as well as with the State Government officials. This duality can result in situations leading to the potential scrutiny of a single transaction or entity by both, Central and State Tax authorities, leading to parallel proceedings. To achieve the goal of a harmonised tax structure, Section 6 of the CGST Act, 2017 provides for cross empowerment of the Central and State Tax officers. 20.2 As per Section 6(1) of CGST Act, 2017, the officers appointed under the SGST/UTGST Act, 2017 are authorised to be the proper officers for the purposes of CGST/IGST Act, 2017 subject to conditions specified. Similar provisions in the SGST/UTGST Act, 2017 empower the Central Government officials to be the proper officers under the SGST/UTGST Act, 2017. Since both, the Central and the State Tax authorities can exercise jurisdiction over a taxpayer, Section 6(2)(b) of the CGST Act, 2017 stipulates that where a Proper Officer under the SGST Act, 2017 has initiated any proceedings on a subject matter, no proceedings shall be initiated by the corresponding Proper Officer under the CGST Act, 2017 on the same subject matter. Similar provision is reciprocated in the State/Union Territories GST Laws. 20.3 Notification No. 39/2017-Central Tax, dated 13.10.2017, as amended, and Notification No. 11/2017-Integrated Tax, dated 13.10.2017, as amended, provides cross-empowerment to State Tax officers for processing and grant of refund.