The Supreme Court ruled on Thursday that the GST Council's recommendations are not binding on the Union or the states. The advice was intended to be compelling, according to Parliament. It said that the Parliament and state legislatures had concurrent authority to legislate on GST.
The GST Council's recommendations are based on teamwork, according to the Supreme Court. It stated that Indian federalism is a conversation between the centre and the states.
The Supreme Court bench led by Justice DY Chandrachud remarked that while the GST Council plays a significant function, it does not always pass unanimous resolutions. It should ideally operate in a coordinated manner. It also stated that the federal system requires harmonised work. Even if they are autonomous, all entities in a federal system are interdependent, according to the court.
The Supreme Court stated that Article 246A treats states and the federal government equally. According to Article 279A, the state and the centre cannot operate independently of one another. According to the report, this also indicates to competitive federalism.
Article 279A of the Constitution does not begin with a non-obstante clause, and Article 246A does not include a repugnancy provision, according to the bench.
The court made key observations on cooperative federalism, saying, "Democracy and federalism are mutually reinforcing. Although the Indian Constitution requires the union to have a greater share of power in order to avoid chaos, the relationship between the two constitutional units is not always cooperative. Indian federalism is a constant dialogue between the state and the centre "The court said.