Optimize IAS
  • Home
  • About Us
  • Free Initiatives
    • Daily Practice Sheets
    • Daily Prelims Notes
    • Prelims Power Play
    • Mains Factly
    • Sunday Essay Sadhna
    • Mains Master Notes
  • Courses
    • Prelims 2023
      • Laqshya 2023
      • Laqshya 2023 OPTIMA
    • Integrated Guidance 2023
      • ARJUNA Prime 2023
      • ARJUNA 2023
    • Mains Guidance 2023
      • DPS Prime (Current)
      • Mains Mentorship Program (Static)
    • CSE Interview Mentorship
    • ESSAY MASTER CLASS 2023
    • ETHICS MASTER CLASS 2023
  • Downloads
    • Daily Prelims Notes Compilation
    • Daily Practice Sheet Compilation
    • PPP Compilation
    • PSIR Notes
    • General Studies Notes
    • UPSC Mains Previous Year Papers
  • Portal Login
  • Home
  • About Us
  • Free Initiatives
    • Daily Practice Sheets
    • Daily Prelims Notes
    • Prelims Power Play
    • Mains Factly
    • Sunday Essay Sadhna
    • Mains Master Notes
  • Courses
    • Prelims 2023
      • Laqshya 2023
      • Laqshya 2023 OPTIMA
    • Integrated Guidance 2023
      • ARJUNA Prime 2023
      • ARJUNA 2023
    • Mains Guidance 2023
      • DPS Prime (Current)
      • Mains Mentorship Program (Static)
    • CSE Interview Mentorship
    • ESSAY MASTER CLASS 2023
    • ETHICS MASTER CLASS 2023
  • Downloads
    • Daily Prelims Notes Compilation
    • Daily Practice Sheet Compilation
    • PPP Compilation
    • PSIR Notes
    • General Studies Notes
    • UPSC Mains Previous Year Papers
  • Portal Login

SC notice on Kerala GST law permitting levy of tax under VAT scheme

  • January 23, 2023
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
No Comments
Print Friendly, PDF & Email

 

 

SC notice on Kerala GST law permitting levy of tax under VAT scheme

Subject : Economy

Section: Fiscal Policy

Concept :

  • The Supreme Court this week sought responses from the Central government and the State of Kerala in a plea challenging provisions of the Kerala Goods and Services Tax (GST) Act that permit assessment and collection of tax under the old tax regime.
  • The petitioner’s business was registered under the erstwhile Kerala Value Added Tax (VAT) Act, which was repealed when the GST regime came into force.
  • It was the petitioner’s case that the GST Act allowed certain provisions of the earlier regime to continue with relation to levy, collection and assessment of tax.
  • When the tax department issued pre-assessment notices in 2018 under the provisions that were in force at the time, the constitutional validity of the notices was challenged by various petitioners.
  • The plea was dismissed by a single-judge of the High Court, who reasoned that the State had sufficient legislative powers to include a savings clause under the Kerala GST Act.

Savings Clause under GST

  • Section 174 of the CGST Act, is the customary ‘Repeal and Savings’ clause introduced by the Legislature to save transactions under pre-GST enactments.
  • The said provision provides for saving of any right, privilege, obligation, or liability acquired or incurred under the repealed Acts.

Value Added Tax Regime

  • Value-Added Tax (VAT) is a form of tax that is assessed incrementally.
  • It is levied on the actual transaction value of a product or service at each stage of production, distribution, or sale to the end consumer.
  • VAT essentially compensates for the shared service and infrastructure provided in a certain locality by a state and funded by its taxpayers that were used in the creation of the said product and service.
  • From a global perspective, although there isn’t much difference between GST and VAT, in India the difference existed due to implementation.
  • Hence to eliminate the cascading tax effect GST subsumed many indirect taxes including VAT.
economy SC notice on Kerala GST law permitting levy of tax under VAT scheme
Print Friendly, PDF & Email
Loading

Recent Posts

  • Daily Prelims Notes 26 March 2023 March 26, 2023
  • Sorghum’s alkaline tolerance can improve crop yields March 26, 2023
  • Origin of Nuclear Fuel March 26, 2023
  • Fatty Liver Disease March 26, 2023
  • Tornadoes rip through Mississippi March 26, 2023
  • Anji Khan Bridge March 26, 2023
  • SC gives states, UT’s , HC’s 3 months to set up online RTI portal March 26, 2023
  • Bommai govt’s bid to scrap 4% Muslim quota touches off firestorm March 26, 2023
  • Be vigilant against Interest rate risk, FM tells banks March 26, 2023
  • Char Dham March 26, 2023

About

If IAS is your destination, begin your journey with Optimize IAS.

Hi There, I am Santosh I have the unique distinction of clearing all 6 UPSC CSE Prelims with huge margins.

I mastered the art of clearing UPSC CSE Prelims and in the process devised an unbeatable strategy to ace Prelims which many students struggle to do.

Free Initiatives

  • Daily Practice Sheets
  • Daily Prelims Notes
  • Mains Factly
  • Prelims Power Play
  • Sunday Essay Sadhna

My Proven Strategy

  • Interview Strategy
  • Mains Strategy
  • Motivational
  • Prelims Strategy

Contact us

moc.saiezimitpo@tcatnoc

For More Details

Work with Us

Connect With Me

Santosh Pandey Quora Santosh Sir Telegram Santosh Sir Youtube Optimize IAS Instagram

Course Portal
Search