New Delhi, NFAPost: The Confederation of All India Traders ( CAIT) has welcomed the order of the Supreme Court made about decisions of the wwGST Council not binding on Central and State Governments.
Though this decision favours the trading community but it will have far-reaching consequences as the order terming GST as a merely recommendatory body has put a certain question marks on the nature and validity of GST Council.
The decision has thrashed the belief that the GST Council having representatives of both Central & State Governments is a supreme body in connection with the GST taxation system. In the wake of the SC order, the CAIT has urged the Union Finance Minister Smt Nirmala Sitharaman to take a call for a review afresh the GST Act and rules.
CAIT National President B C Bhartia and CAIT National Secretary General Praveen Khandelwal said that the apex court’s decision that recommendations of the GST council are not binding on the federal constituents is expected to fracture the mandate of GST.
“If every state is made free from the recommendation of GST Council, it will empower them to make Laws and rules as per their choice which will surely bring disparity and anomaly in GST Rules and the basic fundamental of GST “ one-nation – one tax “ will be highly jeopardised,” said CAIT National President B C Bhartia and CAIT National Secretary General Praveen Khandelwal.
Both the leaders also said that In the wake of SC order, how it is expected that uniformity in the taxation system in the whole country will be maintained in GST law & rules.
“If states start taking independent decisions on GST issues, a whole mess will be created across the Country. Not only this it will curb the free movement of trade across the country. It may also have an adverse impact on foreign investment in India as foreign companies have always advocated a single taxation law & rules all over the country,” said CAIT National President B C Bhartia and CAIT National Secretary General Praveen Khandelwal.
B C Bhartia and Praveen Khandelwal said that the powers of state governments to make variations in GST laws will encourage having differential tax structures in different states. ]
They also said GST is basically a destination based consumption tax. “Now, this decision empowers the producing state government to have different policies to suit it’s own advantage whereas consuming states will have to suffer,” said CAIT National President B C Bhartia and CAIT National Secretary General Praveen Khandelwal.