Top Stories Avoiding Dual Jurisdictions in GST Assessments: How to Draft Reply Notices for SCN in Dual Jurisdiction Conflicts [Find Draft Format Here] Section 6(2)(b) of the CGST Act 2017 prohibits proceedings by two different authorities on the same subject matter By Eeva Mary Sanil – On January 27, 2025 11:08 am – 3 mins read India’s Goods and Service Tax ( GST ) state was introduced in 2017. This was a move to consolidate indirect taxes under a structure that the Central and State Governments shared.
Issues often arise when central and state authorities attempt to assess the same matter, resulting in dual jurisdiction conflicts. Section 6(2)(b) of the CGST Act 2017 prohibits proceedings by two different authorities on the same subject matter. This safety mechanism is adopted to avoid duplication of efforts and ensure taxpayer convenience. Even with such provisions, situations of dual jurisdiction can arise, causing taxpayers stress and financial burden. To effectively mitigate such situations, strict adherence to the provisions of law is required, and proper clarity on the proceedings initiated by one authority is essential.
Understanding the Legal Framework Section 6(2) Subject to the conditions specified in the notification issued under sub-section (a) where any proper officer issues an order under this Act, he shall also issue an order under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as authorised by the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, under intimation to the jurisdictional officer of State tax or Union territory tax; (b) where a proper officer under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act has initiated any proceedings on a subject matter, no proceedings shall be by the proper officer under this Act on the same subject matter.
In the case of DOTT Services Limited v. State of Telangana (2024 TAXSCAN (HC) 833), the Telangana High Court quashed an order by the SGST authorities, stating that CGST authorities had already adjudicated the matter. The court states that as per the provisions under Section 6(2)(b), state authorities lacked jurisdiction to issue a demand order for an issue already assessed by the central authority. This precedent confirms the importance of respecting jurisdictional boundaries. What to do if Dual Jurisdiction Conflicts Arise Identify whether the matter has already been adjudicated or is under appeal with another authority. Document all relevant records such as SCNs, orders, and appeals to establish a timeline for the proceedings. Reply to SCN, orders and appeals effectively without delay. It is important to stay proactive and monitor the proceedings carefully.
How to Draft Reply Notice to an SCN in Dual Jurisdiction Context When responding to a show-cause notice on a matter already under adjudication, follow these structured steps: Acknowledge receipt of the SCN and specify the allegations. Refer to previous orders or SCNs or appeals issued by the other authority. Cite relevant provisions of the law that permit or prohibit such an activity. In this case, Section 6(2) of the CGST Act 2017 is attached to establish the legal framework. Attach copies of all relevant documents substantiating the claim that a different authority is already adjudicating the matter. Refer to cases and judgments to further strengthen your arguments.
End your reply with a specific request to drop the show cause notice or the legal proceedings due to judicial overreach asserting compliance with all applicable provisions. Conclusion The issue of dual jurisdiction in GST assessments emphasises the need for clear communication and adherence to legal provisions. By invoking Section 6 of the CGST act and replying to such adjudication diligently, taxpayers can effectively contest SCNs issued by authorities lacking jurisdiction. By concentrating on procedural validity, factual accuracy, and legal provisions, taxpayers may protect themselves from unnecessary liabilities and guarantee compliance with GST. To Read the full text of the Order