In a petition challenging the vires of the Central Goods and Services Tax (CGST) Act, 2017, Telangana State Goods and Services Tax (SGST) Act, 2017, a division bench of the Hyderabad High Court has issued notices to the Centre and Telangana State government and the GST Council.
The petitioners by S Raj Kumar and two other advocates, urged that both the Acts must be declared as invalid since it violates the provisions of the Constitution. While admitting the petition, a bench comprising Acting Chief Justice Ramesh Ranganathan and Justice A Shankar Narayana has adjourned the matter.
Referring to their visit to Kamat Hotel at Basheerbagh area in the city for breakfast on the Independence Day this year, Raj Kumar told the court that for the single breakfast they were taxed two times once by the Central Government and again by the state government which was Rs 34.92 paisa each.
The Constitution has exclusively vested the power to the Legislature and the Parliament to enact tax laws, but due to the delegation of power to the Goods and Services Tax Council, the role of the legislatures to determine and levy taxes has been totally ousted and their role is limited to endorsing the recommendations of the GST Council, the petition reads.
The petitioner contended that the Constitution 101 Amendment Act 2016 which facilitated enacting the Central Goods and Services Tax Act, the Integrated Goods and Services Tax Act and the Telangana State Goods and Services Act, 2017, is damaging the basic features of the Constitution.
