Recommendations of GST Council binding in framing rules: Govt sources

The recommendations of the GST Council are binding in so far as they relate to subordinate legislation, as has also been reiterated by the SC in its order, sources clarified

While the recommendations of the Goods and Services Tax Council have a persuasive value for framing of laws, they are binding when it comes to framing rules, prescribing rates and taxes under the GST regime, according to  government sources.

The Centre is currently reviewing the Supreme Court judgement on Mohit Mineral matter with respect to taxability on ocean freight. Sources said the apex court had elaborated on the "constitutional scheme" concerning GST.

As prescribed in Article 279A, the Council inter alia makes recommendations to the Centre and states on issues such as model GST law, principles of levy, apportionment of GST levies