In a significant ruling, the Apex Court today held that the recommendations of the GST council are not binding on the Union and the State Governments.
A bench led by Justice DY Chandrachud held that the Parliament intended that the recommendations of the GST Council will have persuasive value. Importantly, the Court held that both the States and Centre can equally legislate on matters of Goods and Service Tax.
While reading out the operation part of the judgment, Justice Chandrachud observed that “Recommendations of GST council are product of collaborative discussion. It is not imperative that one of the federal units must always possess a higher share.”
According to the ruling, Article 279A of the Constitution does not begin with a nonobstante clause and Article 246A does not envisage a repugnancy provision. Indian federalism is a dialogue in which state and centre always engages in a dialogue, the bench stated in a judgment which emphasized the importance of the principles of “cooperative federalism“.
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