Nine-judge bench of SC upholds constitutionality of entry tax

In a landmark move, a nine-Judge-bench of the Supreme Court of India has upheld the constitutionality of entry tax, reports CNBC-TV18. As per SC, protection under Article 301 does not apply to taxes.

Revenue of over Rs 30,000-35,000 crore per annum for state governments is at stake on account of the litigation by companies on entry taxes which is levied by a host state on entry of goods into that state.

Manufacturing companies had appealed that entry taxes restrict trade and freedom of movement of goods and therefore, violate rights under Article 301 of the constitution.

Commenting on the matter, Hitesh Jain, Senior Partner, ALMT Legal says in the immediate term there is Rs 30,000-35,000 crore under stake for different companies that are litigating, but once GST is implemented most such issues will be sorted.Watch video for more...