Business

The recommendation of the GST Council is not binding

New Delhi, The Goods and Services Tax (GST) is going to complete five years of implementation. Before that, the Supreme Court gave a big decision regarding GST. The Supreme Court said that the recommendations of the GST Council are not binding. The Supreme Court has said that it is not necessary for the Center and the states to follow the recommendations of the GST Council. The court has said that its recommendations should be treated as advice or advice.

The Supreme Court said that Parliament and state legislatures have equal powers to make laws on GST. The GST Council is there to give them suitable advice on this. A bench headed by Justice DY Chandrachud said that the central government and the states have an equal right to make laws on GST. Therefore, the GST Council should work in synergy between the Center and the states to find workable solutions.

In fact, the Gujarat government had issued a notification imposing 5% IGST on imports of goods by sea. This was rejected by the Gujarat High Court. The Supreme Court has also now upheld the order of the Gujarat High Court. It is noteworthy that the Finance Ministers of all the states are members in the GST Council and the Union Finance Minister is its ex-officio chairman. This body decides tax rates and makes other tax-related decisions.

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