Centre, states have equal power to make laws on GST: Supreme Court
Tags: National News
The Supreme Court on May 19 held that the Centre and state legislatures have "equal, simultaneous and unique powers" to make laws on the Goods and Services Tax (GST) and the recommendations of the GST Council are not binding on them.
The Supreme Court ruling confirms a decision of the Gujarat High Court which held that the Centre cannot levy Integrated Goods and Services Tax (IGST) on ocean freight from Indian importers.
The Central Government vide Notification No. 8 of 2017 notified in June 2017 that IGST at the rate of 5% shall be levied on the service of carriage of goods in a ship.
This notification was rejected by the High Court.
Basis of the Judgement
The court said that Article 246A of the Constitution empowers the states to make laws with respect to GST.
It empowers (the union and the states) together to make laws on GST.
It treats the Union and the States equally.
Article 279A states that neither the Centre nor the states are dependent on each other in the constitution of the GST Council.
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