New Delhi :In a landmark judgement, the Supreme Court on Thursday clarified that recommendations of the GST Council are advisory in nature meaning, they are not binding on the Central or State governments.
During the course of verdict, the apex court also said the Parliament and State Legislatures possessed equal powers to legislate on Goods and Services Tax(GST) and it was for the GST Council to advise suitably.
With this, the Supreme Court dismissed an appeal by the Central Government against an earlier Gujarat High Court verdict that said the integrated GST(IGST) on ocean freight was unconstitutional. The verdict came from Bench led by Just DY Chandrachud that said the Parliament had intended for GST Council recommendations to have persuasive value.
Context : The Centre along with several importers have been litigating with the Supreme Court over applicability of GST on transportation of imported goods through sea.