Union of India Vs Bangalore Turf Club Limited (Karnataka High Court)
Karnataka High Court Stays the Judgment of Single Judge in which he held that Goods and Service Tax (GST) cannot be levied on the entire bet amount received in the totalisator as it would take away the principle that tax can only be levied on consideration received under the Central Goods and Service Tax Act, 2017 (“CGST Act”). The Court also declared Rule 31A(3) of the Central Goods and Service Tax Rules, 2017 (“CGST Rules”) and Karnataka Goods and Services Tax Rules, 2017 (“KGST rules”) as ultra virus of the CGST Act.
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FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
The present writ appeal is arising out of the order dated 02.06.2021 passed in W.P.No.11168/2018.
Heard learned counsel for the parties on the question of admission.
The appeal is admitted for final hearing.
Learned counsel for the parties are also heard on the question of grant of interim relief.
The respondents before this Court have filed a petition challenging the constitutional validity of Rule 31A(3) of the CGST Rules, 2017 and the learned Single Judge has allowed the writ petition declaring Rule 31A(3) as ultra vires.
Rule 31(A) is reproduced as under:
