Section 9 of the CGST Act, 2017—Levy of GST — The Petitioner, is an advertising firm based at Ghaziabad and started the work of advertising in the district Hathras. The petitioner had taken private properties, not belonging to the Nagar Palika Parishad at four places for putting hoardings on the roof of the said premises. In pursuance of the bye-laws framed by Nagar Palika Parishad, Hathras, a demand of advertisement tax on Hoardings/Sign Boards/Glow Signs affixed at various places including on the private buildings was sought to be recovered from the petitioner. The Petitioner challenged the legislative competence to the imposition, collection and realization of the Advertisement Tax under the U.P. Municipalities Act, 1916 alleging that when there is no provision to impose such a tax there can be no power to frame any bye-laws in that regard.

Held that:-The Hon’ble High Court allowed the writ petition and held that the power of taxation vested with the municipalities under section 128(2)(vii) of the U.P. Municipalities Act, 1916 having been omitted by virtue of Section 173 of the U.P. Goods and Service Tax Act, 2017. The Court held that the levy and collection of Advertisement Tax as ultra-vires, the amounts so collected from the petitioner are liable to be refunded. — Pankaj Advertising Prop. Through Its Prop. Vs. State of U.P. And 7 Others [2019] 9 TAXLOK.COM 012 (Allahabad)