NEW DELHI: Former President Pranab Mukherjee Friday said that the impasse over the Goods and Services Tax (GST) cannot be resolved politically and the supreme court will have to be involved at some key points.
Delivering the 16th V K Krishna Menon Memorial Lecture on the topic ‘Sovereignty, International Law and Diplomacy’ here, Mukherjee replied by accepting the GST, Both the goverments have surrendered their “sovereign rights” over imposing excise duty and sales duty respectively over certain items
“In India, a debate is going on GST. What is GST? To some extent, the 29 state units and Union Territories have surrendered their taxation authorities, certain subjects mentioned in state list of seventh schedule of the Constitution. Government of India has surrendered its sovereignty with regard to the imposition of taxes with regard to the excise duty which was the exclusive domain of the Centre which was at one point of time a major chunk of tax revenue to India,” he said.
“While accepting Goods and Service Tax(GST), the Government of India is surrendering its sovereign authority in imposing excise duty and states their authority of sales tax over certain items. I do feel that the matter cannot be resolved finally politically, but through some extend legal guidance or pronouncement from the highest court would be required at some point of time.” he added.
“The sovereignty of the state should be used in a flexible manner by actively participating in international organisations for receiving common gains. The importance of role of international organisations which are at the utmost level trying to promote cooperation between the states. In this respect almost all sovereign states have conceded to others some of these so called sovereign rights in order to acquire facilities,” Former president added.