New Delhi, July 19: A nine-judge Constitution bench of the Supreme Court today commenced hearings on the validity of "entry tax" levied by states, brushing aside the Centre's plea that the goods and services tax (GST) would soon be introduced in the country.

Entry tax, imposed on inter-state transport of various goods and commodities, has been a big bone of contention between manufacturers, companies and dealers on one side and the states on the other.

While it is a major source of revenue for the states, the business community claims the levy is a violation of Articles 301 and 304 of the Constitution. According to some experts, the states earn around Rs 50,000 crore annually from the tax.

Article 301 grants every individual the "freedom of trade and commerce" throughout India. However, Article 304 also gives states certain rights to impose tax, but only with the assent of the President.

It has been alleged that states often impose tax on inter-state movement of goods and do so without presidential assent.

In view of the complex issues involved, the matter was referred in 2014 to the nine-judge bench headed by the Chief Justice of India.

When the bench commenced proceedings today, attorney-general Mukul Rohatgi said the hearing was "unnecessary" as the Centre was bringing in GST and that would dispense with the entry tax.

"There is no need for this (hearing). A detailed GST bill has been introduced (in Parliament). Once it is ratified by all states and implemented, entry 52 (dealing with entry tax) will be abolished. For the future, this problem won't arise, it will end. It is only with regard to past recoveries and sharing," Rohatgisaid.

However, Chief Justice T.S. Thakur brushed aside the argument. "The (GST bill) may be stuck (for) a while. So much (tax) liability is involved."

The bench pointed out that there were 15,000 entry tax related cases pending in various high courts at present, with the one in Odisha alone accounting for 10,000 of them.