GST council recommendations are not binding on Centre, States but have a persuasive value, the Supreme Court said on May 19.
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The Supreme Court said on May 19 that the GST council's recommendations were not binding on the Union and states. However, they do have a persuasive value because of the country's cooperative federal structure. A bench of Justices DY Chandrachud, Surya Kant, and Vikram Nath also stated that the Centre and states had concurrent rights to legislate on GST, but that the council must work together to reach an acceptable solution. According to Article 246A, both Parliament and the state legislatures have equal authority to legislate on taxation issues.