Maharashtra defies Centre on GST says CBIC circulars not automatically applicable in state

A circular issued on 12 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.

Having said this, 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 the 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 It now says it has withdrawn Circular 39T of 2019 in order to maintain the integrity of communication and to avoid confusion.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.

"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," says the new circular.

This is already causing a lot of mess and confusion among taxpayers.