The Economic Times

'Surcharge an enhancement of rate of sales tax': SC upholds states' power to levy additional sales tax

The Supreme Court reaffirmed a 1974 ruling regarding states' power to levy additional sales tax. This ruling clarified that such levies are enhancements to existing sales tax rates. The court found that previous challenges did not hold merit due to changes in tax legislation. The Goods and Services Tax framework significantly altered the taxation system for states. Therefore, the legal question presented has been rendered academic by these developments.