A recent circular issued by Department of GST in Maharashtra clearly indicates that the state will have a last say on applicability of a circular issued by the Central Board of Indirect Taxes and Customs (CBIC). A circular is issued on 12th January 2021 by the Office of the Commissioner of State Tax, Maharashtra, says that whenever CBIC issues any circular, the Maharashtra GST Department, on its examination, would issue a separate circular regarding its applicability for the implementation of the MGST Act.
The circular withdraws an earlier circular : Circular 39T of 2019 — by the state GST department which had stated that “if GST circular was issued by the CBIC and separate circular regarding the same subject matter was not issued by the state GST department then, GST circular issued by CBIC was applicable, mutatis mutandis, for the implementation of MGST Act, 2017.” But now the state GST department has changed its stance. It now says it has withdrawn Circular 39T of 2019 in order to maintain the integrity of communication and to avoid confusion. The confusion pertains to cases where circulars are issued by CBIC as well as MGSTD.
As per the new circular ,”Henceforth, whenever CBIC issues any circular, MGSTD, on its examination, would issue a separate circular regarding its applicability for the implementation of the MGST Act,”. This is already causing a lot of mess and confusion among taxpayers.
But the question remains that what happens to unanimity and GST Council and What if half of the points are accepted by Maharashtra GST department and the rest are not, then what should GST payers do and also Whom should they approach.
“It does not look like one nation, one tax”