Section 13(8)(b) and Section 8(2) of the IGST Act are constitutionally valid but cannot levy tax under CGST and MGST Acts

Last updated: 13 June 2023

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Quick Summary

The Bombay High Court has declared Sections 13(8)(b) and 8(2) of the IGST Act as constitutionally valid. However, the court ruled that these provisions are strictly applicable only to the IGST Act and cannot be used to impose taxes on services under the CGST and MGST Acts. This means that while the sections themselves are legal, their application for levying tax under state GST laws is restricted.

Court :
Bombay High Court

Brief :
The Hon'ble Bombay High Court in Dharmendra M. Jani v. Union of India [Writ Petition No. 2031 of 2018 dated June 06, 2023] held that the provisions of Section 13(8)(b) and Section 8(2) of the Integrated Goods and Services Tax Act, 2017 ("the IGST Act") are legal, valid and Constitutional. However, the said sections are confined to the provisions of the IGST Act only and the same cannot be made applicable for the levy of tax on services under the Central Goods and Services Tax Act, 2017 ("the CGST Act") and the Maharashtra Goods and Services Tax Act, 2017 ("the MGST Act").

Citation :
Writ Petition No. 2031 of 2018 dated June 06, 2023

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