SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Supreme Court upholds constitutional validity of Goods Entry Tax by states

11 Nov 2016 Evaluate

The Supreme Court has supported the constitutional validity of Entry Tax imposed by states on goods coming in from other states. A 7:2 majority verdict by the apex court ruled that the tax legislation by the state does not require the consent of the President under Article 304 B of the Constitution. The nine-judge bench headed by Chief Justice T. S. Thakur said though state governments are empowered to impose tax on goods coming from other states there cannot be discrimination between the goods.

Further, the apex court said if a state imposes entry tax on products made within the state it was not empowered to impose higher tax on the identical products entering from other states. The majority view also left it for the smaller regular bench to adjudicate upon the term ‘local area’ whether it would refer to the entire state or some pockets within its territory. The nine-judge constitution bench comprises of Chief Justice T S Thakur and justices A K Sikri, S A Bobde, Shiva Kirti Singh, N V Ramana, R Banumathi, A M Khanwilkar, D Y Chandrachud and Ashok Bhushan.

The bench was handling 2,000 cases filed by various companies against the states levying tax on the movement of goods. Companies argued that the tax levied was against the concept of free trade, they also said that removing entry tax laws would make way for the Goods and Services Tax and its enforcement. On the other hand, states said that their sovereign right to tax the movement of good should not be taken away. States added that it was their Constitutional right to pass laws on subjects mentioned in 'State List' and 'Concurrent List'.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: