Neither the GST Council nor Parliament has the final say over every part of GST. Article 246A gives Parliament and State legislatures power to make primary GST laws, while Parliament alone legislates on GST for inter-State supplies. The GST Council recommends policy and legislative approaches; its recommendations are not binding on legislatures. A different rule can apply to government rules or notifications made under delegated powers when the relevant statute requires them to follow Council recommendations. The Supreme Court clarified this distinction in Union of India v. Mohit Minerals Pvt. Ltd. on 19 May 2022.
Are GST Council recommendations binding on Parliament?
No—not when Parliament or a State legislature is exercising its primary lawmaking power. The Constitution gives those legislatures authority over GST; the Council makes recommendations to help coordinate the system but does not enact legislation itself.
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The controlling distinction is between primary legislation, enacted by a legislature, and delegated rules or notifications, issued by a government under authority granted by an Act. Council recommendations are recommendatory for the first category. For the second, they can bind government action where the governing statute makes that action dependent on a Council recommendation.
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The 101st Constitution Amendment established the GST framework. Article 246A gives Parliament and State legislatures simultaneous power to make laws on GST. Its second clause gives Parliament exclusive authority to legislate for GST on supplies in inter-State trade or commerce. The amendment text is published by the Central Board of Indirect Taxes and Customs: 101st Constitution Amendment Act.
That division means it is inaccurate to say Parliament alone controls all GST lawmaking. States have constitutional authority within the GST framework, while inter-State GST is reserved to Parliament.
What does the GST Council do?
Article 279A establishes the Council as a forum for the Union and States to coordinate GST policy. Its recommendation subjects include which supplies may be taxed or exempted, model GST laws, principles for levy and apportionment, place of supply, turnover thresholds, GST rates and specified special rates. The Council’s official description of its role and functions is available at GST Council: About Us.
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A recommendation can shape policy and proposed legislation, but it is not itself a law. It must be given effect through the appropriate constitutional and statutory process.
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What did the Supreme Court decide in Mohit Minerals?
On 19 May 2022, the Supreme Court of India held that GST Council recommendations are not binding on legislatures exercising their Article 246A lawmaking powers. The Court described them as “the product of a collaborative dialogue involving the Union and States” and said they “are recommendatory in nature.” Read the Supreme Court judgment in Union of India v. Mohit Minerals Pvt. Ltd..
The Court also considered an argument that provisions in the CGST and IGST Acts make Council recommendations binding. It distinguished those statutory requirements from the constitutional power to enact primary legislation. If an Act requires a government to act on a Council recommendation when using delegated rule-making or notification powers, the government must comply within that delegated function. That does not transfer the legislature’s primary lawmaking authority to the Council.
How does the answer differ for laws and delegated rules?
| Question | Primary GST legislation | Delegated rules or notifications |
|---|---|---|
| Main legal source | Constitution, Article 246A | CGST or IGST Act provisions that delegate authority |
| Who acts? | Parliament or a State legislature, within its constitutional field | The Union or a State government exercising statutory delegated power |
| Effect of a Council recommendation | Recommendatory, not binding on legislative power | Binding where the governing Act makes the action dependent on a recommendation |
| Controlling authority | Mohit Minerals and Article 246A | The relevant statutory provision, as explained by the Court in Mohit Minerals |
How does Council voting work?
Article 279A(9) requires a decision to receive at least a three-fourths majority of members present and voting. The Union’s vote carries one-third of the total votes cast, and the States collectively carry two-thirds. The Supreme Court discussed this design as part of the Council’s collaborative federal role. Those voting weights govern decisions within the Council; they do not make it a legislature or give it supremacy over Parliament or State legislatures. The judgment’s discussion of the voting arrangement appears in the Supreme Court decision.
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