Absence of Repugnancy related provisions in GST law can lead to an impasse between Centre and states thereby affecting the cooperative federalism. Examine (200 words)
Refer – The Indian Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
KEY POINTS
Observations made by SC on GST
· Article 246A gives both Union government and states equal and co-ordinate power to legislate on matters of Goods and Services Tax (GST). It treats both the Union and the States as “equal units”.
· There are no provisions in the GST Act 2017 to deal with situations where there is repugnancy between the laws drawn up by the Centre and states.
· In case of repugnancy it is for the GST Council to advise them suitably.
· However the advice and recommendations of the GST Council are not binding on the Centre and states. Its recommendations only have a persuasive value.
· Few states welcomed the judgment stating that it provides space for greater flexibility for states in the GST structure.
Possible Implications -
· The Centre feels that this would lead to an impasse and the entire GST structure would crumble.
· Problems could get compounded if any state decides not to accept the recommendation of the Council.
· In the event of states having different GST rates for the similar supply of Goods and services, the entire purpose of implementation of GST as well as the principle of cooperative federalism gets defeated.
· This would fundamentally affect the concept of one nation, one tax.
