The Supreme Court has said that the recommendations of the GST Council are not binding on the central and state governments at all. A bench of Justice Dhananjay Yashwant Chandrachud gave an important verdict in this regard on Thursday. While issuing directions on these recommendations, the bench said that these recommendations are a kind of authority with the central and state governments to make laws on GST (Goods and Services Tax). In the eyes of the court, these recommendations of the Council should be seen as a form of consultation. They just have motivational value.
It is noteworthy that under the Constitutional amendment, it was said that the decision of the GST Council would be binding on the Centre-State, but the bench said that the decision of the Council is not binding, but the Center and the States can take steps accordingly. Referring to Section 279A, the Supreme Court said that it is not necessary that the Central and State Governments should accept the decisions of the GST Council under this.
The court has observed that GST does not contain any such provision to address situations when there is a difference of opinion between the laws made by the Central Government and the State Governments. Even if such a situation arises, then the GST Council gives appropriate advice to them. The top court also 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. The bench said that India is a country with cooperative federalism. In such a situation, the recommendations of the Council can be seen only as advice and the states and the central government have the right to accept it or not.
It is noteworthy that in the upcoming meeting of the GST Council, an important decision can be taken regarding 28 percent GST on casinos, horse racing, online gaming. The Committee of Ministers constituted to review the subject has finalized its report, which is to be placed in the next meeting of the Council. Currently, 18 per cent GST is levied on casinos, horse racing and online gaming.