NEW DELHI: In a landmark decision on fiscal federalism in India, the Supreme Court on Thursday ruled that recommendations of the GST Council, hitherto regarded as obligatory, are not binding on the Union and state governments.
In what could give pace to increasing voices of dissent by states ruled by parties other than that at the Centre, a bench of Justices D Y Chandrachud, Surya Kant and Vikram Nath said, "Parliament intended for the recommendations of the GST Council to only have a persuasive value, particularly when interpreted along with the objective of the GST regime to foster cooperative federalism and harmony between the constituent units... Parliament and the State legislatures possess simultaneous power to legislate on GST."
