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Governments are not bound to follow the recommendations of the GST Council! Supreme Court’s big decision on GST

Referring to sections 279A and 246A, the Supreme Court has said that 279A does not bind the Central and State Governments to accept the decision of the GST Council.

While giving a big decision regarding GST i.e. Goods and Services Tax, the Supreme Court has issued instructions on the recommendations of the GST Council. Under these directions, the Center and the states will not be bound to accept the recommendations of the GST Council. The Supreme Court has considered equal rights of the Center and the states to make laws on GST.

Let us tell you that according to the amended constitution, the decision taken by the GST Council in this regard will be binding on both the Center and the states. However, it was relaxed to some extent. But in the decision of the Supreme Court, it has been clearly said that the decision of the GST Council is not binding but is pervasive. That is, according to the decision of the GST Council, the central and state governments can take steps. During the hearing in this regard, citing sections 279A and 246A, the Supreme Court has said that 279A does not bind the Central and State Governments to accept the decision of the GST Council. At the same time, the Supreme Court said that even 246A does not provide for this, under which the states have to accept the decision of the GST Council in any case. This decision has been taken keeping in view the cooperative federalism.

In such a situation, now a big question mark arises on the importance of GST Council? Also, the purpose of implementing GST there, will that purpose be fulfilled. There has been no statement from the government in this regard so far. The central government will study the Supreme Court’s decision and only then can a response be received.

Talking about the GST collection, there was a record GST collection in April 2022. The government’s total GST collection in the month of April stood at Rs 1.68 lakh crore, which is the highest ever. In March, the government had made a record GST collection of Rs 1,42,095 crore. This is 25 thousand crores more than that. The total GST collection in April stood at Rs 1,67,540 crore. In April 2021, this figure was 139708 crores. Since July 2021, the number of continuous GST collections has crossed 1 lakh crore. Talking about the year 2022, the GST collection in January was 140986 crores. It was 133026 crores in February, 142095 crores in March.

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Shivam Bangwal

Shivam Bangwal is an Indian based entrepreneur who is a tech, travel and coding enthusiast with a post graduation degree on Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Hitchhike TV, Branding Panther and many more.
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