Shivani Thakur
Published on: May 19, 2022 at 19:14 IST
The Supreme Court held that Both Centre as well as States have the power to legislate on Goods and Services Tax (GST) matters and that all recommendations of the GST Council are not binding on States but have only a “persuasive value”.
Justice D Y Chandrachud noted that “the subject-matter being taxation, both the Centre and States have the power to make laws on it’’.
The Court stresses, “the need for the GST Council to work harmoniously to achieve a workable solution”.
The Judgment which came on an appeal against a Gujarat High Court order also dwelt on aspects of Federalism. “Indian Federalism”, it said “is a dialogue between cooperative and non-cooperative Federalism”, one in which “States and Centre always engage in a dialogue”.