Parallel GST investigations may proceed where CGST and State enquiries cover different periods and subjects.

Section 6(2)(b) of the Maharashtra GST Act does not bar a State GST investigation where the parallel CGST inquiry relates to a different period and the materials do not show the same subject matter. The CGST proceedings covered 1 July 2017 to 31 March 2021, while the State GST investigation was said to concern 1 April 2021 to 4 October 2023. On that basis, the bar against a second proceeding by the State officer was not attracted, and the challenge to the State investigation failed.

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Issues: Whether the bar under Section 6(2)(b) of the Maharashtra Goods and Services Tax Act, 2017 applied to restrain the State GST investigation when the CGST investigation covered a different period and alleged fraudulent input tax credit.

Analysis: The proceedings under the CGST Act related to the period from 1 July 2017 to 31 March 2021, whereas the State GST investigation was stated to concern the period from 1 April 2021 to 4 October 2023. On the materials placed before the Court, the investigations were not shown to be on the same subject matter for the same period so as to attract the statutory bar against a second proceeding by the State officer. The Court therefore declined to accept the plea that the State investigation was prohibited merely because a CGST inquiry was pending.

Conclusion: The statutory bar was held not to apply, and the challenge to the State GST investigation failed.

Ratio Decidendi: Section 6(2)(b) of the Maharashtra Goods and Services Tax Act, 2017 is not attracted where the parallel central and State investigations concern different periods and are not shown to be on the same subject matter.

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