All India Association of Tax Lawyers and the Tax Bar Association, Berhampur, on Tuesday, challenged the levy of Goods and Services Tax (GST) before the Orissa High Court.
Before the High Court, the petitioners challenged the levy of Central Goods and Services Tax (CGST) and Odisha GST Acts as they encroach upon the autonomy of the State Governments in their power to levy taxes. They also highlighted the flaws in the procedure in which the Union Government had implemented the GST.
The petition pointed out that both the Union Government and State Governments levied tax on the same event of ‘supply’ of goods and services which seriously effects the fundamental right of the citizens to carry on business, profession and trade under Article 19 (1) (g) of the Constitution.
It also violates Article 21 of the Constitution as unregistered suppliers are concerned since it is prohibitive and discourages other registered buyers from procuring goods and services from them due to Reverse Charge Mechanism (RCM) thereby depriving them of their trade and livelihood.
“Unfortunately, the GST termed as the biggest tax reform in the last 70 years, has been implemented in haste without any preparedness coupled with declaration of arbitrary deadlines in compliances which has resulted in unending, extreme hardship for tax payers and consultants causing anxiety and health issues,” the petition reads.
The petitioners also sought for a direction to the Government to refrain from coercive measures like levying penalties, fines, late fees and other punitive measures, they have also prayed for relief to the tax payers and assesses by simplifying the GST to end the dependence on online compliances and restore filing of returns off-line.
