A division bench of the Bombay High Court, today dismissed the plea seeking postponement of the new indirect tax law, i.e, the Goods and Service Tax (GST), which already been launched by the Government on July 1st.
A bench of Justice VK Tahilramani and Justice SK Shinde had earlier reserved the judgment just before the rollout of the much awaited tax reform.
The petitioner had raised some serious averments against the Government and asked that how can the Union government implement such a major âconstitutional changesâ on Tax Reforms in middle of a financial year that too âwithout proper preparationsâ.
He contended that the government has not followed the three-monthsâ period for disposing these representations as per the established procedure for new major changes as tax reforms,â the petition reads. According to him, the implementation of GST at this time will cause confusion and chaos in daily needs of the common people, especially in the supply of essential medicines, food & drink items and they might be disrupted by unpreparedness on part of the authorities.
Overruling the above submissions, the bench said that the levy and collection of taxes on goods and services has sanction of law and therefore, the decision to implement the law cannot be disturbed.
Justice Sandeep K Shinde, who penned the judgment, said that âit is much evident that all such necessary steps are taken by the respondents to ensure implementation of the GST, as it appears (i) over 65 Lakhs tax-payers have already migrated to GST network and obtained registrations, (ii) the rates and taxes have been notified; (iii) rules have been framed and notified ; (iv) wide publicity is given in public domain; (v) entire machinery has been geared up not only to accept new challenge but to ensure GST is implemented effectively.â
Read the full text of the Order below.
