Economy, Banking and Finance · 4 November 2026
Supreme Court Affirms State Authority to Impose Additional Sales Tax
Exam-focused facts from the 4 November 2026 current affairs briefing.
Key facts
- The Supreme Court upheld states’ legislative competence to impose additional sales tax or surcharge calculated on dealers’ sales tax liabilities.
- A seven-judge Constitution Bench treated the levy as an enhancement of sales tax under Entry 54 of the State List.
- The court said the reference had little practical significance after GST replaced the relevant taxation framework.
- The dispute arose from Arjun Flour Mills vs State of Odisha and Section 5A of the Odisha Sales Tax Act, 1947.
- Questions about the Punjab surcharge and direct credit of cess proceeds to the Punjab Social Security Fund were left open.