oppn parties SC Puts GST In A Spot

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  • Rajasthan Police arrest Md Riyaz Akhtari and Gaus Mohammed for beheading the tailor in Udaipur
  • Curfew imposed in 7 police station areas in Udaipur and internet services suspended across Rajasthan as a tailor is beheaded in Udaipur for his social media post in support of Nupur Sharma
  • West Bengal chief minister Mamata Banerjee says the state will not give preference to Agniveers as it will clean "BJP's dustbin"
  • Enforcement Directorate asks Shiv Sena leader Sanjay Raut to appear before it on Friday
  • Devendra Fadnavis meets Amit Shah, discusses tie-up with Shinde
  • Rebels reject Uddhav Thackeray's emotional appeal to come and discuss the issues
  • BJP wants MVA government to face floor test, petitions the government on the same
  • Rupee hits a new low of 78.84 against the dollar, might breach the 79 mark
  • Hotel rooms below Rs 1000 and unbranded packed food to be brought under GST
  • Pallonji Mistry, the head of the Shapoorji Pallonji group, dies at 93. He was the single largest shareholder of Tata Sons with a 18.4% stake
  • India just about manage to beat a rampaging Ireland as the latter make a valiant attempt to chase down India's mammoth score of 225 in the second and final T20. India won by 4 runs
  • Experts believe that the time granted by the Supreme Court to rebel MLAs paves the way for holding a floor test in the Maharashtra assembly
  • Uddhav Thackeray strips rebel ministers of portfolios but stops short of sacking them
  • PM Modi says that energy access should not be limited to rich nations
  • BJP says it is ready with a plan and a new government in Maharashtra may be sworn in by Sunday
Uddhav Thackeray resigns as Supreme Court does not provide relief /////// Jasprit Bumrah to lead India in the 5th Test against England as Rohit Sharma ruled out due to Covid
oppn parties
SC Puts GST In A Spot

By Our Editorial Team
First publised on 2022-05-20 03:17:15

About the Author

Sunil Garodia The India Commentary view

The idea of one nation, one tax as espoused by the Goods & Services Tax regime received a huge jolt on Thursday when the Supreme Court ruled that the GST Council decisions are not binding on the Centre and the states. This leaves the door open for states to think of levying their own rates on different items or even imposing additional taxes. At worst, it will have the effect of bringing down the carefully crafted consensus on the matter, which, despite occasional disputes between the Centre and the states, has stood for so many years and has served the tax regime well.

The apex court used a technical point of law to rule that "if the GST Council was intended to be a decision-making authority whose recommendations transform to legislation, such a qualification would have been included in Articles 246A or 279A" but "neither does Article 279A begin with non-obstante clause nor does Article 246A provide that the legislative power is 'subject to' Article 279A" and hence "GST Council is a recommendatory body aiding the government in enacting legislation on GST."

Although the Centre has said that the Supreme Court ruling will not impact GST regime as it does not lay down anything fundamentally different from the existing GST framework, opposition-ruled states have already started demanding changes in decision-making. The Centre will have to take steps to rectify the situation.  Since the Supreme Court ruling is on a technical point of law, a review petition is unlikely to help. The Centre must amend the law and plug the legal gap to ensure that the GST is not fragmented. This must be done fast to avoid uncertainty on the issue.