The Supreme Court of India on Thursday said the recommendations of the goods and services tax (GST) council are not binding on the central and state governments.
The top court said that the Parliament and state legislatures have similar rights to legislate on GST and it is for the GST Council to advise appropriately.
Prime Minister Narendra Modi led the central government and a few importers had been fighting in the SC over the validity of GST on the transportation of imported goods via sea route.
The apex court declined an appeal by the centre against an earlier Gujarat High Court judgement that said that integrated GST on ocean freight is unconstitutional.
Indian Parliament intended that the recommendations of the GST Council will have persuasive value, said a bench led by Justice DY Chandrachud on Thursday.
Justice Chandrachud said that the union and states have synchronous abilities to enact GST and the constitution doesn't imagine a repugnancy arrangement and the GST board should work in an amicable way to accomplish serviceable arrangements.
Referring to 246A and 279A of the Constitution, Justice Chandrachud said that 246A treats state and centre as equivalent while 279A says that state and centre can't act autonomously of one another.