Q. With respect to SC’s Judgment on GST Council’s Recommendations, which of the following given statement is/are correct?
1. GST Council decisions are persuasive and binding.
2. The Constitution has not specifically mentioned that all GST Council decisions will become law.
Select the correct answer using the codes given below:
Answer: B
Notes:
Explanation:
What is the SC’s Judgment on GST Council’s Recommendations?
In addition to dismissing the appeal of the Union Government, the Court pointed out that:
- Article 246A gives the power to make laws relating to GST to both the Parliament and the State legislatures ;
- The Constitution has not specifically mentioned that all GST Council decisions will become law. If that was the intention, Article 279A would have included clarifications to this effect;
- The recommendations of the GST Council are the product of a collaborative dialogue involving the Union and States. They are recommendatory in nature. To regard them as binding would disrupt fiscal federalism where both the Union and the States are conferred equal power to legislate on GST;
- It concluded that the GST Council decisions are only ‘persuasive’ and not binding.
Source: EPIC June 2022
