SC Announces Sensational Judgement On GST
On the 19th of May, Thursday, the Supreme Court announced a sensational landmark verdict that said that the recommendations of the Goods and Services Tax (GST.)
As per the verdict and recommendations, the Council is not binding upon the states and the Union. The top court also said that the Parliament wanted the recommendations to have persuasive value and that the Parliament and state legislatures have simultaneous powers to legislate on GST.
The SC bench helmed by Justice DY Chandrachud also said that the GST Council must ideally function in a harmonized manner and the federal system needs harmonized work. The court cited Article 246A and said that the Centre and states are equal. It also cited Article 279 to suggest that states and the Centre cannot act independently towards each other.
Soon after this verdict came, netizens were divided. While some backed this verdict as fundamental to maintaining cooperative federalism, others said it nullifies the purpose of one tax in one country that the Modi Government wanted to accomplish with the implementation of GST.
Economist and ex-Chief Economic Advisor Arvind Virmani said that if states legislate different GST rates for different goods and services, the purpose of having one tax in one country is dead. He wrote, “If States legislate different GST rates for one tax one country is dead. Is there a flaw in the constitutional amendment or the GST law that implements it? If the latter, it can and must be corrected immediately!”
If States legislate different #GST rates for different Goods & services, the original concept of one tax one country is dead(😭). Is there a flaw in the constitutional amendment or the GST law that implements it? If the latter, it can & must be corrected immediately! https://t.co/cxpk6MGmVrView on X
The Dravida Munnetra Kazhagam (DMK) Member of the Legislative Assembly (MLA) Dr. T.R.B. Rajaa, however, had a different take than Virmani on the issue. Hailing the current Supreme Court verdict as a win for cooperative federalism, he wrote, “More power to the States! Dravidian model catching up. “Indian federalism is a dialogue in which state and center always engage in a dialogue.” Cooperative federalism key says SC. “Both Centre and States Can Legislate on GST: Supreme Court.”
More power to the States !#DravidianModel catching up 🔥
The judgment of the Top Court led by Chief Justice of India Mr. N.V. Ramana announced the verdict on the GST, with a bunch of recommendations.
Stay tuned for further updates.
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