Bombay HC Dismisses PIL Seeking To Defer GST Rollout [Read Judgment]

The Bombay High Court has dismissed a PIL seeking deferment of the implementation of GST which was rolled out on July 1.

A bench of Justice VK Tahilramani and Justice SK Shinde had reserved the judgment on June 29 after hearing the petitioner and Additional Solicitor General Anil Singh, who was appearing for the Union of India.

The petitioner, Dr. K.S. Pillai, is an assistant professor at King Edward Memorial Hospital in Parel.

He contended that the rollout in the middle of the financial year would cause much confusion and chaos amongst the general public and it might affect their daily needs like supply of essential medicines, food and drink items because of unpreparedness on part of the government.

He also expressed the doubt as to whether the SGST and CGST, in their current form, would be effective in reducing the regulatory and administrative hurdles.

Therefore, it is stated in the petition that under the circumstances, it is advisable to make an automatic software interfaced with the Trade Tax Automated Bank Account (TTABA) and suggested other measures for effective implementation of GST.

Arguing on behalf of the Union of India, ASG Anil Singh submitted that 30 state legislatures had already passed the State Goods and Services Tax Act, 2017. Necessary rules have been framed and notified.

He argued that over 65 lakh taxpayers have already migrated to GST network and obtained registrations. GST Seva Kendras have also been set up at every commissionerate, division and range in order to answer all questions of the taxpayers and will continue to do so.

60,000 officers in the Central and state governments have been trained in GST law.

In its order, the court observed:“The facts narrated by the learned ASG thus, indicate that respondents have taken all steps to implement New Tax System including to bring awareness amongst citizens.

In our view, petitioner cannot urge and/or seek directions to the respondents to postpone the decision to implement GST with effect from 1.7.2017, for simple reason that herein levy and collection of taxes on goods and services has sanction of law. That from written submission, it is much evident that all such necessary steps are taken by the respondents to ensure implementation of the GST.”

Thus, the petition was dismissed.