Minister of State for Finance clarifies on binding nature of GST Council’s recommendations in light of Supreme Court ruling

July 19, 2022

In response to a question posed in Rajya Sabha, the Minister of State for Finance Mr. Pankaj Chaudhary clarified that the ruling of the Supreme Court of India in Union of India & Anr. v M/s Mohit Minerals Pvt. Ltd. (which held that recommendations of the GST Council are non-binding on States) does not alter the constitutional mechanism of the GST Council. He stated that the State and Central Acts provide that rates, exemptions and rules etc. would be prescribed only on the recommendations of the council, and therefore are binding on the States and the Centre.

The documented response against Unstarred Question No. 203 on July 19, 2022 can be accessed here.