Page 43 - Banking Finance December 2023

ARTICLE

sustaining traditional knowledge systems, boosting pride in grassroot level, facilitated by the agencies and the self-help
ancestral occupations, enhancing artisans' incomes, groups. Furthermore, robust data collection on artisan
productivity and market opportunities. communities using digital tools such as mobile apps and
centralized dashboards will help in enhancing planning and
This scheme is expected to have a significant impact on monitoring efforts. Ensuring competitiveness of crafts
nearly 5 million artisan households, promoting inclusive against man made product will require maintaining quality
growth and empowerment. By integrating marginalized benchmarks and providing the right product orientation.
craft communities with main stream economies both
nationally and globally through access to credit, skills and This schemes multidimensional approach, focussing on skills,
markets, it will enhance the competitiveness and export access to credit, market, technology and social security for
potential of artisan products. traditional artisans in India, holds great potential in uplifting
marginalized communities and preserving heritage crafts.
Conclusion However, meticulous on ground implementation and

Extensive awareness campaigns utilising various media collaboration between government agencies, private sector
platforms will be necessary to inform and mobilize and community organization are crucial for its success.
beneficiaries nationwide. Strengthening last mile Further robust monitoring and grievance systems will be
connectivity can be achieved through extensive outreach at imperative in delivering optimal outcomes.

GST council’s role only recommendatory: HC

The Madras high court has held that the GST council’s role, council’s recommendations as binding would disrupt fiscal
particularly in product classification, is only federalism.
recommendatory. The high court said it is open for the government to issue
In Parle Agro’s case, the court determined ‘flavored milk’ a fresh notification, to tweak the rate of tax. “The GST
to be under a lower GST tariff of 5% despite the council council is not a law-making body but is meant to provide
recommending a higher rate of 12% in its meeting of recommendations to the legislature for making changes
December 22, 2018. This decision would support taxpayers in law (either by way of amendment or issuance of a
against GST demands based solely on council discussions notification). The HC decision only re-emphasises this
or even mere clarificatory circulars. However, the principle. The council also recommends issuance of a
government can introduce changes, including in GST rates, clarification, typically on contentious issues pursuant to
through legal amendments or notifications. representations made by industry. The clarifications issued
“The backdrop to this case is that the GST council in its have to be in line with the law, read with relevant judicial
meeting had in its minutes stated that flavoured milk will preachments,” said Pratik Jain, partner at Price
be liable for a higher rate of GST. However, no amendment Waterhouse & Co.
was carried out by way of a notification leading the HC to Typically, after a GST council meeting, a legislative
hold that the ‘minutes of the meeting’ do not represent amendment is made, or a notification is issued. However,
the law. A similar situation could also arise where a there are several instances, where after a GST Council
clarification is issued by the GST council through a circular meeting, the issue has been merely clarified via a circular —
rather than through appropriate amendment in law or a which by drawing support from the high court’s decision could
notification,” said Sunil Gabhawalla, founder of a CA firm be open to challenge by the industry. On the flip side, it should
specialising in indirect taxation. be noted that circulars are binding on GST authorities.
The HC relied on a Supreme Court ruling in Mohit Mineral, That said, experts view that by and large, the circulars have
which had emphasised that GST council recommendations been beneficial to the industry, hence a spate of litigation
aren’t binding on the Union and states. It said that treating contesting the circulars is not foreseen.

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