Supreme Court bars Uttar Pradesh VAT on interstate gas sales
Business
The Supreme Court just told Uttar Pradesh it can't charge VAT on natural gas sent from Andhra Pradesh through pipelines.
The judges said these sales count as interstate trade under the Central Sales Tax (CST) Act, not something Uttar Pradesh can tax.
This backs a 2012 high court decision that had already sided with companies like Reliance Industries, Tata Chemicals, and IFFCO.
Justice Maheshwari warns states overreaching taxation
The court made it clear: only the central government gets to tax interstate trade. States can't jump in, even if the gas mixes with other supplies in shared pipelines.
Justice Maheshwari summed it up by saying states shouldn't cross constitutional limits just to collect more local taxes.
This keeps things fair for businesses moving goods across India.