Notice received from CGST & SGST departments at same time

There cannot be parallel proceedings.

The officer who started first should finish the assessment.

You can ask the other department to drop th proceedings. 

https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=12411

4. Parallel proceedings by Central and State Authorities unacceptable

Shree Cement Ltd Vs Union of India (Rajasthan High Court) [W.P.No.17725 of 2023] 

Facts of the Case: 

Parallel show cause notices were issued by Central and State GST Authorities on the same subject matter.

Contention of the Petitioner: 

· It was claimed that the action of the officials of the CGST/SGST of issuing simultaneous show cause notices on the same subject matter is contrary to Section 6(2)(b) of the CGST/SGST.

· It is also submitted that in terms of the guidelines issued by the GST Council dated 20-9-2017, the Central Government and State Government have decided to assign the taxpayers registered in the State of Rajasthan to one Authority and as per the same, the Administrative Authority in the case of petitioner is the Central Government. However, in violation of the guidelines, the officials of the State GST Council have also issued a show cause notice to the petitioner.

Decision Held:  

The High Court granted an interim stay against adjudicating aforesaid SCNs and issued notice to both, Central and State GST authorities to respond.

This is a jurisdictional question under GST and there is a specific rule that protects you here.

Under Section 6(2)(b) of the CGST Act, once an assessment or adjudication proceeding is initiated by one authority (CGST or SGST), the other authority CANNOT initiate a parallel proceeding for the same matter and the same period. The first authority to initiate gets exclusive jurisdiction.

Practically:
- Check which notice was issued first (by notice date and DIN number). The first mover has jurisdiction.
- Write formally to the SECOND authority citing Section 6(2)(b). Inform them that proceedings for the same period and matter have already been initiated by the first authority. Request them to drop their proceedings.
- Respond substantively only to the FIRST notice.

One exception: if the notices cover DIFFERENT matters or DIFFERENT time periods, both CAN proceed in parallel. Check the demand details carefully.

Be sure to respond within the notice deadline. Late responses typically result in ex-parte orders.

For businesses with hotel or industrial operations, Section 80-IB also offers deduction benefits that can reduce the overall tax liability being disputed. See this [Section 80-IB deduction guide](https://taxgarden.in/blog/section-80ib-deduction-hotels-industrial-undertakings-hospitals-india) for context.

Key provisions on parallel proceedings:

• Sec 6(2)(b): where a proper officer under the SGST or CGST Act has initiated any proceedings on a subject matter, no proceedings shall be initiated by the other authority on the same subject matter.

• SC in Armour Security (India) Ltd (2025): issue of a summons or search is not "initiation of proceedings". Proceedings are "initiated" by an SCN. The bar applies to the "same subject matter": the same liability and the same period.

• Your case: CGST anti-evasion (FY 2017-18 to 2023-24) and SGST scrutiny (ASMT-10, FY 2019-20). These are overlapping periods and may have overlapping issues.

– Reply to the State officer, cite Sec 6(2)(b), and give details of the CGST anti-evasion inquiry (DIN, date, issues covered).

– Request that the ASMT-10 proceedings be kept in abeyance or transferred, to avoid duplicate demand.

– If the issues differ (e.g. ITC mismatch in scrutiny vs an evasion case on specific suppliers), both can proceed. Ensure no double demand on the same item.

• CBIC Circular 199/11/2023 and the GST Council's cross-empowerment arrangement also set out coordination between Centre and State officers. Inform both offices in writing.