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GST Council’s proposals not binding on Centre, States:

GS Paper 2:

Syllabus: Parliament and State Legislatures – structure, functioning, conduct of business, powers & privileges and issues arising out of these.



The Supreme Court has upheld Gujarat High Court ruling which said the Centre cannot levy Integrated Goods and Services Tax (IGST) on ocean freight from Indian importers.





What else has the Court said?

  • GST Council‘s recommendations have a “persuasive value” and were not binding on the Centre and the state governments.
  • The Parliament and the state legislatures have “equal, simultaneous and unique powers” to make laws on GST – Article 246A.


Implications of this judgment:

  • This would have far-reaching implications on various other matters where the states are not in agreement with the decision of the GST Council, especially in light of the compensation period coming to an end in June.
  • The ruling clearly defines the role of the GST Council – to advise and recommend on GST issues. To accept such advice and pass appropriate amendments in law is purely the domain of the central and state legislatures.


What is GST?

It is a Single tax on supply of goods and services, right from the manufacturer to the consumer.

  • It is a destination based tax unlike the present taxation scheme which is origin based.

In – Depth analysis on GST: Reference: read this.


Insta Curious:

Do you know about the GST compensation? Reference: read this.



Prelims Link:

  1. What is GST?
  2. What are SGST and IGST?
  3. Related Constitutional provisions.
  4. Goods outside the purview of GST.
  5. What is a Cess?
  6. What is a surcharge?
  7. What is the compensation cess fund?

Mains Link:

Discuss the need for GST Compensation Cess.


[Q.3) Which of the following have been subsumed under GST?
    1. Central Excise Duty
    2. Additional Excise Duty
    3. Service Tax
    4. Countervailing Duty

Choose the correct answer using the codes given below:

    1. 1 and 2 only
    2. 2 and 4 only
    3. 1 and 3 only
    4. All of the above. ]

Sources: the Hindu.