State GST Proceedings Post-Central Dept’s Search Valid if Quantum of Amount and Period of Demand is Different: Madras HC

The Madras High Court ruled that State GST proceedings are valid even after the Central Department conducts a search, provided the quantum of demand and the period of assessment differ. The court emphasized the principle of non-duplication, stating that separate proceedings are permissible if they cover distinct aspects of the taxpayer’s liabilities. The ruling clarifies procedural boundaries between state and central authorities under the GST framework, fostering cooperative federalism. Businesses facing parallel inquiries must ensure accurate documentation and compliance to avoid complications. The decision reinforces the legal framework's adaptability in addressing jurisdictional overlaps while protecting taxpayers from undue harassment. It also reflects the judiciary’s role in maintaining harmony within GST administration, enabling both state and central authorities to function effectively while ensuring procedural integrity.