How can I legally challenge the double taxation system in India, where we not only pay income tax (which reduces our net earnings) but also have to pay GST on every transaction without any GST exemption and what legal avenues we’ve to seek relief, potentially by appealing to the Supreme Court?

Community Forums Legal Advice India How can I legally challenge the double taxation system in India, where we not only pay income tax (which reduces our net earnings) but also have to pay GST on every transaction without any GST exemption and what legal avenues we’ve to seek relief, potentially by appealing to the Supreme Court?

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    • #58568 Reply
      Sumitabear306
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        Sumitabear306
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        February 7, 2025 at 1:00 pm
        Iam facing a situation where the zeal to work hard is dying. the cumulative tax burden on our income and spendings is unfair. Initially, our income is significantly reduced by income tax, and on top of that, we do not receive any GST exemption on the goods and services we purchase or sell, leading to a scenario of double taxation. I want to understand the legal basis for challenging this issue and explore all possible arguments and examples that justify this appeal to the Supreme Court against the tax authority.

        Straightforward this is totally unfair that sometimes we’ve to pay 18-27% on gst on an income which is already taxed heavily without any guarantees and benefits.

        And finally after everything you want to have some world class stuff to make this life less miserable we’ve to pay custom duties on it.

        In summary, I am seeking a legal remedy that calls upon the Supreme Court to direct the tax authority to modify the taxation mechanism, where the tax payers get some sort of relief somewhere. This would include reconsidering the current framework under GST in light of income tax liabilities, or make some relaxation in custom duties, or make the tax like toll, road substantially reduced or something in similar front. thus ensuring that my effective tax burden does not amount to a double taxation scenario. My ultimate goal is to achieve a balanced and equitable tax system that aligns with constitutional principles and promotes a fair environment.

      • #58580 Reply
        User_00c76c16
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          User_00c76c16
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          February 7, 2025 at 1:04 pm
          Is there like a comparison data including this double taxation compared to rest of the third world , second and first world countries ?

          • #58590 Reply
            Sumitabear306
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              S
              Sumitabear306
              OP
              February 7, 2025 at 1:09 pm
              I think we’ve one of the highest GST rates compared to any other country

          • #58579 Reply
            Indiangargi2466
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              Indiangargi2466
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              February 7, 2025 at 1:11 pm
              A broad plea like that will likely be rejected. Especially if you take into account how often SC rejects pleas that maybe difficult to take a stand on, like marriage for lgbtq community, gender neutrality in laws of rape, dv etc. And just say “it depends on the legislature”

              You could however target something as specific and absurd as the GST system. Cite all the weird ways things are taxed. Like the recent popcorn thing, cars vs helicopter example, roti vs paratha example and many more. But most likely that too will be rejected outright.

              • #58589 Reply
                Sumitabear306
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                  S
                  Sumitabear306
                  OP
                  February 7, 2025 at 1:16 pm
                  How about the custom duties ? Can it be challenged?

                  Even after working hard, paying tax on income, we’ve to settle for substandard products who gross neglect the basics and respect towards the consumer. We’ve every right to have the best medicines, best equipments ?

                  • #58595 Reply
                    Indiangargi2466
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                      Indiangargi2466
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                      February 7, 2025 at 1:18 pm
                      Theoretically yes. You can go to the SC with your plea. Whether they will entertain it or not is anyone’s guess.

                      • #58599 Reply
                        Sumitabear306
                        Participant
                          S
                          Sumitabear306
                          OP
                          February 7, 2025 at 1:19 pm
                          Thank you. 🙏

                  • #58578 Reply
                    User_44aeded4
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                      User_44aeded4
                      PARTICIPANT
                      February 7, 2025 at 1:11 pm
                      India needs to upgrade it’s weapons systems, submarines, fighter jets. All this without even mentioning the massive pension obligation.

                      If young people give up, stop working, or quit the work-force what will happen to the defense of the country?

                      • #58588 Reply
                        User_32fdb537
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                          User_32fdb537
                          PARTICIPANT
                          February 7, 2025 at 2:48 pm
                          The argument has to be balanced, why should young people be asked to pay for everything, why cant corporates (who btw now pay less cumulative tax) pay for the defence of the country? Why cant rich farmers contribute?

                          • #58594 Reply
                            User_cd199034
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                              User_cd199034
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                              February 7, 2025 at 3:11 pm
                              The corporates also employ the people who pay tax. You increase tax on corporations, and they will outsource or automate work to keep net income the same. So corporate taxes will increase but reduce employment or cause under employment.

                              Corporate rates are lowered to incentivise investment in India.

                              • #58598 Reply
                                User_44aeded4
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                                  User_44aeded4
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                                  February 7, 2025 at 3:19 pm
                                  The answer is inheritance tax. 

                                  Tax the Ambanis and Adanis, if they leave India and give up their citizenship take over their assets and prohibit them from doing any business in India. If they leave inspite of everything, give them a one-time 50% tax on wealth accumulated in India and then let them give up their citizenship. US has a similar process.

                                  • #58602 Reply
                                    User_32fdb537
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                                      User_32fdb537
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                                      February 7, 2025 at 4:24 pm
                                      Ambanis and adanis will never leave india. Their kind of business will succeed only in india and nowhere else.

                                    • #58601 Reply
                                      User_cd199034
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                                        User_cd199034
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                                        February 7, 2025 at 11:56 pm
                                        I don’t like inheritance tax in principle. We need wealth creation in the country. Inheritance tax and wealth tax does the opposite.

                                    • #58597 Reply
                                      User_32fdb537
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                                        User_32fdb537
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                                        February 7, 2025 at 4:26 pm
                                        Haha, easier said than done. Indias labour cost is still among the lowest in the world. Despite this, manufacturing is looking at east asia instead of india. It has got nothing to do with taxes, but more with the babu culture of india. Reducing taxes to keep corporates happy is like applying band-aid on a deep cut.

                                        • #58600 Reply
                                          User_cd199034
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                                            User_cd199034
                                            PARTICIPANT
                                            February 7, 2025 at 11:59 pm
                                            Corporates also include white-collar professional service related industry and not just manufacturing.

                                            • #58603 Reply
                                              User_32fdb537
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                                                User_32fdb537
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                                                February 8, 2025 at 7:25 am
                                                Yes, the white collar professionals in a country like ours barely touches 2-3% of the population. So, in essence, corporates are helping grow 2% of the country, for which they got tax breaks. And the govt is recovering that amount from those 2% people. Sounds fair, doesnt it?

                                    • #58577 Reply
                                      Quickguru4523
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                                        Quickguru4523
                                        PARTICIPANT
                                        February 7, 2025 at 1:27 pm
                                        Nothing against taxation policies of the government in india can be challenged in the supreme court as the courts can only upkeep the law they are not lawmakers laws are passed and made by the cabinet

                                        • #58587 Reply
                                          Sumitabear306
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                                            Sumitabear306
                                            OP
                                            February 7, 2025 at 1:33 pm
                                            What else can we do ? Can we challenge custom duties on essentials ? Right to life and basic respect for Indian consumers?

                                            • #58593 Reply
                                              Quickguru4523
                                              Participant
                                                Q
                                                Quickguru4523
                                                PARTICIPANT
                                                February 7, 2025 at 1:53 pm
                                                Yes you can challenge custom duties on essential goods like maybe life saving drugs

                                            • #58586 Reply
                                              Quicksushma9423
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                                                Quicksushma9423
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                                                February 8, 2025 at 4:34 am
                                                If any law is unconstitutional, SC can strike it down

                                                • #58592 Reply
                                                  Quickguru4523
                                                  Participant
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                                                    Quickguru4523
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                                                    February 8, 2025 at 4:44 am
                                                    Yes that’s right

                                              • #58576 Reply
                                                User_c93e0e59
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                                                  User_c93e0e59
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                                                  February 7, 2025 at 3:15 pm
                                                  Avg time for SC to accept or reject a petition on hearing day is few minutes or less than that. A petition that compares direct tax and indirect tax will be thrown out in <5 seconds. I understand the sentiment but target should not be tax but wastage of it.

                                                • #58575 Reply
                                                  Indianthinker2205
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                                                    Indianthinker2205
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                                                    February 7, 2025 at 5:25 pm
                                                    1. If you pay your tax on time, the guarantee is you won’t face jail.
                                                    2. Income Tax and consumption tax is a world wide phenomena, the rates may vary.
                                                    3. People who pass these law or fix these rates don’t care about middle or any class problems.
                                                    Solution: enough people coming together to solve this problem may help.

                                                  • #58574 Reply
                                                    Alphaguru3758
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                                                      Alphaguru3758
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                                                      February 7, 2025 at 6:03 pm
                                                      Business karo aur “creatively” tax avoid karo. Mast life hai

                                                    • #58573 Reply
                                                      Expertsarang2012
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                                                        Expertsarang2012
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                                                        February 7, 2025 at 7:17 pm
                                                        You seem to be under the influence of social media gyaani babas who spit out random BS in the name of facts.

                                                        It is not double taxation: Double taxation means taxing the SAME SOURCE again and again.

                                                        Income tax on your salary is a Direct tax which is paid to the government directly.

                                                        But GST & customs are INDIRECT TAXES imposed on the manufacturers but ultimately borne by the end consumer.

                                                        The rate of GST is decided carefully so that it’s very low for NECESSARY ITEMS LIKE FOOD & MEDICINES. If you don’t spend a lot you won’t have to pay a lot of GST. Typically, only non-essential items have a high GST tax rate.

                                                        GST is not something new, it’s not as if there was no indirect taxes before GST. In fact, the older system of VAT, Sales Tax, Excise etc. had a double taxation system which means we used to pay much higher tax for the same item compared to GST.

                                                        And why does the government need so much tax???

                                                        Because India is a nation of THIEVES who lie and manipulate to avoid paying taxes. The percentage of people paying direct taxes in India is below 5%. Most business owners falsify their financial statements to avoid paying taxes. The government ALL OVER THE WORLD has no other option but to take direct and indirect taxes.

                                                        Also. custom duty protects the Indian manufacturing industry. Tell me, if Your friend or parents worked in an Indian electronics company and suddenly the entire Indian electronics industry died thanks to the removal of custom duties, how would you feel? They won’t be able to work anywhere else at the same salary grade because their experience would be useless in other industries and they would have to start working as a fresher again!

                                                        • #58585 Reply
                                                          Sumitabear306
                                                          Participant
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                                                            Sumitabear306
                                                            OP
                                                            February 7, 2025 at 7:25 pm
                                                            > non-essential items have a high GST tax rate.

                                                            Who decides what is essential?

                                                            > And why does the government need so much tax???

                                                            > Because India is a nation of THIEVES who lie and manipulate to avoid paying taxes.

                                                            And why is that so ? Because of the government

                                                            > The percentage of people paying direct taxes in India is below 5%.

                                                            Another BS.

                                                            > Most business owners falsify their financial statements to avoid paying taxes.

                                                            Whose fault is that ?

                                                            > Also. custom duty protects the Indian manufacturing industry.

                                                            And does it ? Making Indian consumers pay more or make it unaffordable is not the way.

                                                            Tax system is absurd with horrible brainwashing. And people like you defend it with neither direct or indirect gain.

                                                            Substandard materials damaging infrastructure. Lack of access to resources is pushing us backwards in the name of saving local.

                                                            You don’t see to understand that for earning a buck we have to work double triple hard in a system which indirectly or directly loots us, and then on spending the hard earned buck we’ve no choice to degrade it further, thus losing all the value of the work we put in. But how will you understand that ?

                                                        • #58572 Reply
                                                          Brightseeker9869
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                                                            Brightseeker9869
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                                                            February 7, 2025 at 7:19 pm
                                                            You got to have a reason how the current taxation regime is affecting your legal rights or public at large. And it simply can’t be “the taxes are absurdly high, milord”. Once you’ve found out a solid reason, engage a good senior advocate and pay a hefty fee. If you got a good luck, your petition ~might be entertained~
                                                            Don’t expect it to succeed though.

                                                            • #58584 Reply
                                                              Sumitabear306
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                                                                Sumitabear306
                                                                OP
                                                                February 7, 2025 at 7:28 pm
                                                                Man I just want higher quality of life, goods to be available to us at the price it should be. It just pains to see countrymen working their ass off and then struggle for quality.

                                                                Substandard quality products at higher price and quality products made out of reach.

                                                                I will definitely come back with my case study

                                                            • #58571 Reply
                                                              User_3c7de78e
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                                                                User_3c7de78e
                                                                PARTICIPANT
                                                                February 7, 2025 at 9:32 pm
                                                                Double taxation: 1 cheez me 2 baar tax lgana.

                                                                GST and salary tax are 2 different things and are never applied to the same resource.

                                                                Secondly, the court won’t entertain it because no matter how much we cry about it, it’s a necessity since in India there are 50cr-80cr people who can’t afford a meal on top the fact that only single percentage of workforce is paying direct taxes along with bhen-ke-lode govt babus and politicians who doesn’t pay for anything.

                                                                So yeah, phli baat to desh ke L lage hai, dusri baat ye ki taxation jruri hai varna 20cr-40cr log 5 saal ke andar aram se mar jaynge India me which in my view isn’t a burden you or anyone wants in the back of their mind.

                                                                • #58583 Reply
                                                                  Sumitabear306
                                                                  Participant
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                                                                    Sumitabear306
                                                                    OP
                                                                    February 8, 2025 at 6:08 am
                                                                    Bro 😭

                                                                    > dusri baat ye ki taxation jruri hai varna 20cr-40cr log 5 saal ke andar aram se mar jaynge India me

                                                                    Aur substandard products causing death, poor health condition, helplessness ka kya ?

                                                                • #58570 Reply
                                                                  Bravesruti3900
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                                                                    Bravesruti3900
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                                                                    February 8, 2025 at 12:26 am
                                                                    That’s not double taxation but sucks regardless as the taxes are really high in India. What is supreme court going to tell the government?The taxes are not illegal, just very high!

                                                                    • #58582 Reply
                                                                      Sumitabear306
                                                                      Participant
                                                                        S
                                                                        Sumitabear306
                                                                        OP
                                                                        February 8, 2025 at 6:06 am
                                                                        They need to tell under the right to live, you’ve to give up tax benefits under customs so that people can have the essentials of better quality. Simple.

                                                                    • #58569 Reply
                                                                      Quicksushma9423
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                                                                        Quicksushma9423
                                                                        PARTICIPANT
                                                                        February 8, 2025 at 4:35 am
                                                                        People are talking about targeting specific things.

                                                                        How about GST Cess, that we have to pay due to bad planning and execution by the government?

                                                                        • #58581 Reply
                                                                          Sumitabear306
                                                                          Participant
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                                                                            Sumitabear306
                                                                            OP
                                                                            February 8, 2025 at 6:05 am
                                                                            Just tell me one thing, if all are going to get shitty things irrespective of the work they put in, how can one have zeal to invent, earn more, work harder ?

                                                                            • #58591 Reply
                                                                              Quicksushma9423
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                                                                                Quicksushma9423
                                                                                PARTICIPANT
                                                                                February 8, 2025 at 6:13 am
                                                                                I agree with your point, but sorry, I do not understand how it’s related to my comment

                                                                                • #58596 Reply
                                                                                  Sumitabear306
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                                                                                    Sumitabear306
                                                                                    OP
                                                                                    February 8, 2025 at 6:15 am
                                                                                    It’s not, I’m just frustrated. Sorry.

                                                                                    I just dont want us all to pay world class price for 3rd class stuff. We have to have right to quality of life.

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