# Supreme Court upholds 1974 ruling on states’ additional sales tax 2026-11-04T08:47:05+00:00 | Governance | Indian Opinion Desk Corroboration: 6 independent outlets (7 source reports) The Supreme Court on Wednesday, 4 November held that a 1974 ruling upholding states' power to levy additional sales tax or surcharge calculated as a percentage of the existing sales tax continues to bind. A seven-judge Constitution Bench led by Chief Justice Surya Kant unanimously declared that a reference made nearly 27 years ago, in 1999, had become academic after the introduction of the Goods and Services Tax (GST) in 2017 and the amendment or replacement of the statutory provisions under challenge. The court declined to revisit the legal question, stating it no longer required adjudication. The CJI, writing for himself and five other judges, said the five-judge ruling in S. Kodar vs State of Kerala (1974) remains good law. That decision held that an additional tax or surcharge computed as a percentage of sales tax payable is an enhancement of the sales tax rate and falls within state competence under Entry 54 of List II. Justice K.V. Viswanathan delivered a separate concurring opinion. The reference originated from a challenge to Section 5A of the Orissa Sales Tax Act, 1947. The court directed that the lead and connected matters be listed before an appropriate regular bench for disposal. ## Indian Opinion Analysis All six outlets cover the Supreme Court’s decision as straight news, reporting the same core facts: a seven-judge bench led by Chief Justice Surya Kant held that a 27-year-old reference on states’ power to levy additional sales tax has become academic after GST, and that the 1974 S. Kodar ruling remains good law. The Economic Times, New Indian Express, Free Press Journal, The Hindu, Business Standard and Livemint each include the key quote from the CJI, the composition of the bench, Justice Viswanathan’s concurrence, and the origin of the reference in a challenge to Section 5A of the Orissa Sales Tax Act. Livemint adds the post-GST context of items still outside the GST framework, while Business Standard and Free Press Journal give the specific turnover slabs from the Orissa Act. The coverage is uniform wire-copy-style reporting with no discernible slant. ## Coverage Coverage: 5 sources, 5 neutral - economictimes.indiatimes.com (neutral report) Straight news wire-copy, no slant detected - newindianexpress.com (neutral report) Straight news, identical factual coverage - Reuters - business-standard.com Straight news, adds turnover slab details - thehindu.com Straight news, identical framing to others - freepressjournal.in (neutral report) Straight news, adds solicitor general's argument - livemint.com (neutral report) Straight news, adds post-GST context on excluded items This brief was synthesised by AI from the 5 sources linked above, so one read covers every framing they carry. Update, 4 November 2026: this story now draws on 6 sources. Last updated 2026-11-04T10:17:48+00:00. Tags: Goods and Services Tax, S. Kodar, State List Entry 54, Supreme Court of India, Surya Kant Canonical: https://indianopinion.org/supreme-court-affirms-states-power-to-levy-additional-sales-tax/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/supreme-court-affirms-states-power-to-levy-additional-sales-tax/#story-in-brief How this brief was made: an AI model read the reports linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. Stance labels are editorial classifications of how each outlet framed this story, assigned by the same model, not ratings of the outlets. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/