The Essential Goods (Declaration and Regulation of Tax on Sales or Purchase) Act,1952 was enacted in the year 1952 to declare certain goods to be essential for the life of the community. Under the Act 15 categories of goods were declared and States were restricted from imposing tax on Sales or Purchases of those goods subject to the Assent of The President.
Later The Central Sales Tax Act, 1956. was enacted and earlier Act was repealed, but spirit of certain goods to be essential for the life of the community was kept alive in the shape of certain goods to be of special importance in inter State trade or commerce. Under the Act 18 categories of goods to be of special importance in inter State trade or commerce were declared.
Surprisingly Model GST Law draft is saying Good Bye to the goods of special importance.
Legal maxim of natural justice is Nihil quod est inconveniens est licitum: anything which causes inconvenience cannot be lawful.
Therefore, I request to the Government to declare following Goods & Services to be Essential for life under the GST law.
Goods Essential for life –
Services Essential for life –
After declaring above Goods & Services to be Essential for life, specific provision should be made in the GST law that No State shall impose or authorises to impose any tax on declared Goods & Services to be essential for life except with prior assent of the President.
Further, this list should be known as “Positive List”.
Positive in the sense- positive for public, positive for government, positive for all.