Business Standard

Recommendations of GST Council binding in framing rules: Govt sources

The recommendations of the GST Council are binding in so far as they relate to subordinate legislation, as has also been reiterated by the SC in its order, sources clarified

The panel was expected to submit a report by last month and suggest various steps to raise revenue, including hiking the lowest slab and rationalising the slab

The GST has been working on this collaborative institutional mechanism, where the Centre and states follow the recommendations of the Council, which have been arrived at with consensus.

Shrimi Choudhary New Delhi
While the recommendations of the Goods and Services Tax Council have a persuasive value for framing of laws, they are binding when it comes to framing rules, prescribing rates and taxes under the GST regime, according to  government sources.

The Centre is currently reviewing the Supreme Court judgement on Mohit Mineral matter with respect to taxability on ocean freight. Sources said the apex court had elaborated on the "constitutional scheme" concerning GST.

As prescribed in Article 279A, the Council inter alia makes recommendations to the Centre and states on issues such as model GST law, principles of levy, apportionment of GST levies

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: May 20 2022 | 6:01 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to