Centre, states have simultaneous powers to legislate on GST: Supreme Court

Satya Prakash

New Delhi, May 19

The Centre and states have simultaneous powers to legislate on Goods and Service Tax (GST), the Supreme Court ruled on Thursday.

A Bench led by Justice DY Chandrachud said the GST council must work in a harmonious manner to achieve workable solution between the Centre and states.

“Recommendations of GST council are product of a collaborative discussion. It’s not imperative that one of the federal units must always possess a higher share,” it said.

The GST Council’s recommendations were not binding on states but would have only persuasive value, it added.

“States and Centre can equally legislate on matters of GST. All recommendations of GST council are not binding on the state legislature,” it said.

“Article 246A treats state and Centre as equal. Article 279 says state and Centre cannot act independent of each other. This also points towards competitive federalism,” it said.