The creamy layer is a concept that puts an income ceiling on people availing caste-wise reservations in government jobs and education. The term was introduced by the Sattanathan Commission in 1971, which directed that the “creamy layer” should be excluded from the reservations (quotas) of civil posts. Till now, this is only applicable for reservations under the Other Backward Classes quota. SCs and STs are excluded since it was argued that their backwardness was based purely on untouchability for which economic improvement was not a remedy.

• S Subramanium argues that excluding the creamy layer from the backward castes reservation quotas could lead to upper-caste homogeneity in institutes of higher education and government employment as economically disadvantaged backward class will not be able to compete in the academic race. Hence, he believes that quota system was introduced as affirmative action against caste discrimination, which is unconnected to economic status.
• Ashwini Deshpande, in his study on the Indian Railways, asserts that ‘reservation affect the efficiency of public service’ is a myth. However, Ashwini Deshpande argues that reservation is not an anti-poverty program. The more advantageous sections of all caste groups are able to enter higher education. To make sure that the poor are represented, we need separate policies.
• K Ravi Srinivas argues that contrary to widely held view, the question of ‘creamy layer ‘is not decided on economic criterion alone. The idea in fact, is to ensure that socially and educationally advanced persons do not corner reservations in the name of social justice for OBCs.
• Pradipta Chaudhury writes that reservations have served essentially as tools to absorb the privileged sections of lower castes into the ruling class that has pushed real economic problems facing the poor away from the centre stage.
• Adfer Rashid Shah writes that further subcategorizing and dividing quotas will proliferate caste, group and community politics, and excessive politicization of the very idea of welfare will stoke mutual hatred and will prolong exclusion. Thus, the need of the hour is to appoint a commission to assess the relevance and need for affirmative action among various castes, groups and communities.

Creamy layer for SC and ST

The Supreme Court in Jarnail Singh vs Lachhmi Narain Gupta case(2018) calls for an extension of the creamy layer principle for reservation in promotions for Scheduled Castes and Scheduled Tribes.

• The bench noted that adhering to the letter and spirit of principles of equality and social justice, it is crucial to exclude the "advanced" sectionsof the community from the benefits of reservations. 
• The demand for applying the creamy layer principle to SC and ST reservations rests seemingly on two pillars. 
  • The first approachis led by the social justice theory, wherein it is believed that the "poorest of the poor" have been denied the said benefits, and the more affluent sections have successfully cornered them in a somewhat zero-sum game. 
  • The second approachargues that those SCs and STs who have gained sufficient money and power should instead be treated at par with the general "forward" sections of society. 

Criticisms against application of creamy layer to SC/ST

1. Against Precedence: It has been clearly stated in Indra Sawhney (1992) case, that any discussion on creamy layer “has no relevance” in the context of SC/STs.
2. Representation: Going by the creamy layer ceiling of Rs 8 lakh per annum, even “Group D” functionaries will come under the definition of creamy layer.
3. Protection: The SC/STs are given job reservations not because they are poor but because they are excluded. The Constitution made the Scheduled Castes and Scheduled Tribes as a separate category of subjects to protect them from caste aggression. It was also to help them gain the strength they need to withstand it and to grow autonomously.
4. A right and not a welfare: The first part of Article 335 stipulates job reservations for SC/STs as a right of representation, not as a welfare measure. However, the creamy layer among SC/ST employees helps fulfil the second part of Article 335 that requires maintaining the “efficiency of administration”.

The response to this question needs comprehensive analysis of all the dimensions vis -a -vis the social, economic and political stature of SC and ST.  Reservation provides appropriate positive discrimination for the benefit of the socially and educationally backward sections of the society. And the creamy layer concept helps in ensuring that only the genuinely deserving and the most downtrodden members of any particular community get those reservation benefits.