Constitutionality of Levy and Provisions of GST: 10 Important Supreme Court Judgments

This Round-Up analytically summarizes 10 important Supreme Court decisions on the constitutionality of various Goods and Services Tax Provisions and Levies that shaped the indirect Tax Regime since the advent of the “One Nation, One Tax” in July of 2017. 1. GST on Lease/ Rent Payments: PIL in Supreme Court challenging Constitutional Validity - A plea has been filed before the Supreme Court challenging the constitutional validity of the levy of GST on lease/ rent payments where a bench of Justice M.R. Shah and Justice B.V. Nagarathna has asked the petitioner(s) to serve an advance copy to the Additional Solicitor General to seek instructions in a plea challenging constitutional validity of the levy of GST on lease/ rent payments. 2. Supreme Court upholds Validity of Provision relating to GST Refund of Inverted Duty on Input Services - The Supreme Court upheld the validity of Rule 89(5) of the CGST Rules 2017 which pertains to Good and Service Tax ( GST ) Refund of Inverted Duty on Input Services. 3. Supreme Court dismisses plea challenging Provisions of GST Act as constitutional challenge can be addressed before the High Court - [DEVENDRA DWIVEDI vs UNION OF INDIA & ORS. - 2021 TAXSCAN (SC) 182 The Supreme Court dismissed the plea challenging the Provisions of CGST Act, 2017 as constitutional challenge can be addressed before the High Court. The petitioner, Devendra Divedi has filed the petition challenging the constitutional validity of certain provisions of the Central Goods Service Tax Act 2017; a direction for compliance with the procedure for investigation enunciated in Chapter XII of the Code of Criminal Procedure 1973; and declaring the investigations which have been instituted against the petitioner as illegal. 4. Supreme Court upholds Validity of GST Compensation Act and Cess Laws - A two-judge bench of the Supreme Court has today upheld the validity of the Goods and Services Tax (Compensation to States) Act, 2017 enacted by Parliament as well as the Goods and Services Tax Compensation Cess Rules, 2017. 5. No GST Exemption for Spinal Muscular Atrophy Medicine: “Policy decision” - The Supreme Court two-judge bench of Justice M R Shah and Justice C T Ravikumar held that a Writ of Mandamus cannot be issued directing the Government to exempt the medicine to cure Spinal Muscular Atrophy (SMA) from Goods and Services Tax ( GST ) as it is a policy matter of the Government. 6. CBIC Notification imposing IGST on Importers is in Violation of GST Act: Supreme Court - A division bench of the Supreme Court has held that the levy of IGST on the importers as per the notifications of the Central Board of Indirect Taxes and Customs (CBIC) is in violation of Section 8 of the CGST Act. 7. Supreme Court upholds validity of imposing of GST on Lotteries & Gambling - The Supreme Court upheld the validity of imposing Goods and Service Tax ( GST ) on Lotteries and Gambling. The Court granted the petitioner the liberty to challenge notification by which rate of GST for lottery run by the State and lottery organized by the State have been made the same. 8. SC dismisses Transfer Petition of UOI pending before Various HC challenging constitutional validity of Section 16(2)(c) of the CGST Act - The Supreme Court dismissed the transfer petition of Union of India pending before Various HC challenging the constitutional validity of Section 16(2)(c) of the CGST Act. “So far as other Writ Petitions, which are pending before various High Courts, it is open for the parties to bring this Order to the notice of the concerned High Courts and seek expeditious disposal of their cases,” the Apex Court said. 9. SC stays Delhi HC order declaring IGST Imposition On Oxygen Concentrators Imported By Individuals As Unconstitutional - The Apex Court on Tuesday stayed the Delhi High Court order declaring the imposition of Integrated Goods and Services Tax (IGST) on the import of oxygen concentrators as gifts for personal use to be unconstitutional. 10. SC refuses to entertain PIL seeking declaration against govt. for using funds collected through Clean Energy Cess towards Compensating states under GST - The Supreme Court directed the Public Interest Litigation (PIL) seeking the declaration against the government for using funds collected through Clean Energy Cess towards compensating states under GST to be filed before appropriate forum. Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates