Current Affairs - State - Discussion

The Supreme Court struck down a 2007 notification by the Rajasthan government that provided a VAT exemption on locally manufactured asbestos sheets and bricks. The Court ruled that such exemptions were discriminatory under Article 304(a) of the Constitution, as they favored local products over similar goods from other states. This decision reinforces the principle of free trade within India, ensuring that state taxation policies do not create unfair advantages for local industries. By invalidating the exemption, the Court emphasised that all states must adhere to constitutional guidelines promoting equal economic opportunity and trade fairness across India.