GST Update

 Desk of CA. Praveen Sharma – 1048 Series (CAPS) 

Gujarat High Court M/s Jai Ganesh Enterprise v. Union of India & Ors.

Case: M/s Jai Ganesh Enterprise v. Union of India & Ors.

In a significant judgment, the Gujarat High Court held that State GST officers are legally empowered to act as "Proper Officers" under the IGST Act without requiring a separate notification from the Central Government. The Court observed that Section 4 of the IGST Act itself authorises State GST officers to exercise powers under the Act.

The case arose from a challenge to confiscation proceedings initiated by State GST authorities in an inter-State transaction. The taxpayer argued that only Central GST officers could exercise such powers. However, the Court rejected this contention and held that State GST officers can validly initiate proceedings under the IGST Act.

The Court also noted that taxpayers have an effective statutory remedy by filing an appeal under Section 107 of the GGST Act. Since an alternative appellate remedy was available, the writ petition was dismissed.

This ruling strengthens the concept of cross-empowerment under the GST framework and ensures smooth administration of GST across India.

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