Breakfast GST challenged in High Court

Source – indiatimes.com

HYDERABAD: A division bench of the Hyderabad High Court comprising Acting Chief Justice Ramesh Ranganathan and Justice A Sankara Narayana ordered notices in a writ petition filed challenging the constitutional validity of Central Goods and Services Tax Act, 2017, the Integrated Goods and Services Tax Act, 2017 and the Telangana State Goods and Services Act, 2017.

The bench was dealing with a petition by S Raj Kumar, G Nagesh advocates and another. The petitioners submitted that the taxing scheme of the Constitution has not provided for multiple taxing authorities taxing on a single taxing event.

Contending that for a single breakfast in hotel they were taxed twice, once by the Central government and then again by the state government, the petitioners lamented that the GST regime took away the taxing powers from the state legislature and the Parliament in an unconstitutional manner.

The bench while issuing notices to the Centre, Telangana government, GST Council and the restaurant management directed them to file their counter affidavits within three weeks.