GST UPDATEZ ON 30-04-2026 by R.SRIVATSAN, IRS, NACIN, CHENNAI
The Honourable Andhra Pradesh High Court recently delivered a significant judgment clarifying the jurisdictional boundaries between Customs authorities and GST officers in matters relating to Integrated GST (IGST) on imports.
The ruling establishes that once Customs has adjudicated IGST liability, GST officers whether Central or State cannot initiate parallel proceedings. This decision strengthens the principle of avoiding double jeopardy and ensures clarity in tax administration.
To have a brief understanding of dispute, the petitioner, a company engaged in manufacturing aquatic feed, imported raw materials during FY 2017–18 to 2022–23.
It claimed exemption from IGST on these imports. While Customs authorities had already adjudicated the exemption claim and accepted the petitioner’s position, State GST Authorities later inspected the premises and issued notices under Section 73(5) of the CGST Act, questioning the exemption and demanding tax.
The core dispute was –
Whether GST officers could initiate proceedings on import IGST liability after Customs had already adjudicated the same issue?
The petitioner argued that:
IGST on imports is levied under Section 3 of the Customs Tariff Act 1975 and assessed at the point of import under the Customs Act, 1975.
Section 28 of the Customs Act 1962 provides the mechanism for recovery of duties/taxes not levied or short‑paid, including IGST.
Any Parallel proceedings by GST officers would amount to duplication only.
The petitioner was allotted to Central GST jurisdiction. So State GST officers lacked authority.
The State GST officers contended that :
They were empowered under Section 6 of the CGST/APGST Acts and Section 4 of the IGST Act to initiate proceedings.
Cross‑empowerment allowed them to act even if the taxpayer was under Central jurisdiction.
The exemption claimed was not valid, and the petitioner had misapplied the law.
The honourable High Court decisively ruled that sided:
1. IGST on imports is inseparably linked to customs assessment with exclusive Customs Jurisdiction
2. Customs authorities alone have jurisdiction to assess, exempt, and recover IGST on imports.
3. No Parallel GST Proceedings should be initiated once Customs adjudicates IGST liability, GST officers cannot reopen the issue.
4. Import transactions fall squarely within the customs framework while GST law does not permit duplication.
5. Cross Empowerment Limits under Section 6 of CGST/APGST Acts and Section 4 of IGST Act permit only if the taxpayer is allotted to that jurisdiction.
6. Since the petitioner was under Central jurisdiction, State GST officers had no authority.
Well…..
The Andhra Pradesh High Court’s ruling provides much needed clarity on jurisdictional boundaries in the GST administration. It confirms that Customs authorities have exclusive jurisdiction over IGST on imports, including assessment, exemption, and recovery. GST officers cannot initiate parallel proceedings once Customs has adjudicated liability.
This judgment safeguards taxpayers from overlapping actions, reinforces the principle of natural justice, and ensures that import IGST disputes are resolved within the customs framework and eliminates uncertainty through multiple proceedings highlighting that jurisdictional discipline must be respected.
NACIN, Chennai
Post Script:-
Case Name : Avanti Feeds Limited v. The Deputy Commissioner of State Tax and others
Court : High Court of Andhra Pradesh
Writ Petition No : W.P. No. 5988 of 2024 (and batch)
Date of Judgment : April, 2026
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