Cuttack: The All India Association of Tax Lawyers and the Tax Bar Association of Berhampur Tuesday filed a public interest litigation (PIL) in Orissa High Court challenging the implementation of Goods and Services Tax (GST) Act by the Centre.
The lawyers’ bodies sought the HC’s intervention to save traders and tax payers from penalty and other coercive measures in case of delay in filing tax returns.
The Union Ministry of Finance, Ministry of Law and Justice, State Finance Secretary, Law Department Principal Secretary, the Central Board of Excise and Customs, GST Council, Goods and Services Tax Network, New Delhi, and the Commercial Tax Commissioner were made parties to the case.
All India Association of Tax Lawyers’ President Rabindra Nath Pal claimed the Centre has introduced GST arbitrarily without taking into account the views of common people. “The GST Act violates the principle of federalism, especially financial federalism, as enshrined in the Indian Constitution. The Act has restricted the financial powers of states by taking away their rights to levy sales tax and value added tax,” Pal claimed.
The petitioners informed the court that implementation of GST Act has violated the fundamental rights of people to carry on any business, profession and trade as mentioned in Article 19 (1) of the Indian Constitution. “The GST rules discouraged retailers and shopkeepers from procuring goods from suppliers who have failed to register themselves to the new tax regime. So, the GST Act has violated Article 21 of the Constitution which guarantees citizens to earn livelihoods,” said the petition.
The petitioners alleged that the Centre has introduced GST without creating adequate awareness among traders. They claimed that traders and tax payers are facing several technical problems while filing their returns online.
The lawyers’ bodies have urged the High Court to direct the Centre to simplify the GST rules and take steps to create awareness among tax payers, traders, lawyers and common people.
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