5 Years of ‘Not So Good and Simple Tax’: Five Times Courts were Disappointed with GST

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Five years ago, the most celebrated Goods and Services Tax (GST) was introduced in India with an aim to simplify and subsume the indirect taxes in the country.

The promise of “Good and Simple Tax” as pronounced by the Prime Minister and the Finance Minister during the mid-night launch still remains a promise due to the frequent technical glitches and ambiguities in the laws.

Here we recall the five times when the Indian Courts slammed the government for the poor implementation and the technology of the most significant tax reforms ever happened in India.

1. GST is not Taxpayer-Friendly- Bombay High Court (2018)

In Abicore Binzel Technoweld Pvt. Ltd. v. Union of India, a two-judge bench of the Bombay High Court asked the Government to resolve the technical glitches in the Goods and Services Tax Network (GSTN) soon citing the difficulties faced by the taxpayers and the GST Practitioners in filing returns.

2. High Court shall not be Flooded with Litigations- Gujarat HC on Technical Glitches in GSTN (2022)

In Aggarwal Dyeing And Printing Works v. the State of Gujarat, a division bench of the Gujarat High Court has asked the Government to take care of the technical glitches in the GSTN at the earliest and slammed the Government that the High Court is flooded with the litigations due to such glitches.

3. Bombay HC asks Govt to ‘Wake Up’ and Take Measures to Correct Errors in GSTN (2018)

In Abicor and Binzel Technoweld Pvt. Ltd. v. Union of India After blaming the Central Government for technical glitches in the Goods and Services Tax (GST) regime, the Bombay High Court today asked the Government to wake up and take measures to address the issues of the taxpayers.

4. Higher Margin of Tax on Indian Shipping Lines will Drive them Out of Business, rules Supreme Court on Ocean Freight

In Union of India v. M/s Mohit Minerals, the Supreme Court has held that the margins arising out of taxation from GST would not create a level playing field and drive the Indian shipping lines out of business.

5. Gujarat HC slams GST Dept for Using Coercive Measures to Meet Revenue Collection Charges

In M/s Wipro v. State of Gujarat, a two-judge bench of the Gujarat High Court, while criticizing the methods adopted by tax officials to meet revenue targets given by the higher-ups, asked the state tax officials not to take coercive steps to recover tax amounts, particularly when appeals and applications for stay filed by taxpayers are pending with the Courts.

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