"Giving its ruling in the Mohit Minerals case, the Supreme Court held that since the Indian importer is liable to pay IGST on the 'composite supply', comprising of goods and supply of services of transportation, insurance, etc. in a CIF (Cost Insurance Freight) contract, a separate levy on the Indian importer for the 'supply of services' by the shipping line would be in violation of...the CGST Act," ET. This means that those companies which have already paid the tax will be able to claim a refund, while those who are yet to pay can heave a sigh of relief. "The Supreme Court has ruled in the Ocean Freight case that recommendations of the GST Council would have persuasive value but are not binding on the Union and the States," The Quint. "This reminds the states that they have sovereign power to enact or amend the GST law in their respective states." "Till now, the GST Council, which is comprised of the Union Finance Minister and the Finance Ministers of all states, has made recommendations on various matters concerning, rates, procedures, forms, etc.," BT. "We are now back to square one with this judgement. What this means for trade and industry is that the olden days of multiple tax rates and multiple interpretations are back again, which are without a doubt pain for all concerned." "Regardless of the number of percentage points of GDP growth it may entail, no political party or leader would willingly sacrifice their fiscal powers. It was precisely for this reason that Narendra Modi, as chief minister of Gujarat, was vehemently opposed to GST until 2014," The Print. Modi was elected for his first term as Prime Minister in 2014, wikipedia. "In an official event with Prime Minister Modi..., Tamil Nadu Chief Minister MK Stalin demanded an exemption from 'one nation, one exam' NEET policy, treatment of Tamil as an official language on par with Hindi and payment of GST dues owed to the state, all in the same speech. It is obvious that GST has muddied the entire lake of federalism in the country." Under Article 279A "the Centre's vote holds a one-third weightage, while the weightage of the vote of all the states combined is two-thirds," Scroll. "However, for a recommendation to be passed by the council, it needs a three-fourths majority. This means that no recommendation can be passed without the Centre's vote, giving it an effective power of veto, which means the balance of power in the GST Council leans heavily towards the Union government." India loses great opportunities because of unfair taxes. Elon Musk has decided to set up his new factory to manufacture Tesla cars in Indonesia, ET. "Progress toward EVs has been scattered and commitment isn't clear." "Add in policy hoops and punitive taxes, and India has all but ruled itself out by making the cost of investing in its market so high." A whiff of freedom for the states. On the 75th anniversary of Independence, wikipedia.
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