The Finance Ministry has said that it will first scrutinize and carefully examine the Supreme Court’s judgment on the limited powers of the GST council before taking any decision of appeal against it. It also stated that the verdict was only a reiteration of the existing law. However, any appeal would be related to the integrated GST aspect as the court has already dealt with it.
Recently Supreme Court gave its verdict on the GST council A bench led by Justice D.Y. Chandrachud ruled that the central government and the states have simultaneous powers to legislate on the matters related to the Goods and Service Tax (GST). The recommendations of the GST council are not binding both on the center and the states.
According to Athena law Associate partner, “GST council is a constitutional body that frames laws concerning GST both for the center and for states”. It is important to have one single uniform law to regulate the GST council otherwise every state would start to make laws according to their own policies.
According to the associated partner of the Lakshimkumaran and Sridharan attorneys, “It is also imperative for the trade to evaluate the positions to be adopted in respect of the GST already remitted on ocean freight and explore the possibility to claim refunds. Assessees could take a stand to not remit GST on ocean freights. Only time will tell if this decision will attract amendments to render the levy on ocean freights constitutional”.
According to the report by the PWC analysis, The GST council can now evaluate the filing of refund claims of IGST. This latest verdict by the Supreme Court will further expedite the pending litigation related to GST cases. According to the report, the decision of the Supreme Court is recommendatory in nature rather than binding.