PoliticsPhoto: The HinduSupreme Court Rules Cess as Sales Tax Increment Within State Powers
On November 4, 2026, the Supreme Court ruled that a cess imposed as an increment to sales tax by a State legislature remains within the State's authority. A seven-judge Bench reaffirmed the 1975 S. Kodar versus State of Kerala decision, stating such a cess is treated like the principal sales tax. The Public Accounts Committee criticized the Finance Ministry for not transferring ₹9,222 crore in cess collections to designated reserve funds, emphasizing these funds should not finance fiscal deficits.
The Hindu··New Delhi



