New Delhi: The Centre and the State Governments in India are bound to comply with the recommendations made by the Goods and Services Tax (GST) Council, the Union Government stated in the Rajya Sabha.
The Supreme Court, on May 19, ruled that the GST Council’s recommendations ‘cannot be binding on the Union and State Governments. Rather, these ‘recommendations only have a persuasive value’, the SC had observed.
The GST Council has the onus as per the Constitution to give recommendations, stated Union Minister of State for Finance Pankaj Choudhary in Rajya Sabha on July 19.
The Centre also pointed out that according to the GST legislations for the State and the Union governments, the GST rate and other norms are fixed only based on the GST Council’s recommendations.
Though more than a thousand decisions were taken by the GST Council over the past 5 years, only one had required voting. Even the States which had expressed opposition against the decision had implemented the same recommendations.
The Minister also stated that the GST Council decisions — which are taken after clear deliberations — are being implemented by the Union and State Governments without any changes.
Kerala Chief Minister Pinarayi Vijayan had clarified, earlier this week, that the decision to increase GST on packaged food items from retail and small-scale traders, including Kudumbasree, will not be implemented in the State.
