SC order on GST Council clearly establishes rights of state govts: PTR

MADURAI: Reacting to the Supreme Court’s order which held that the GST Council’s recommendations are advisory in nature and not binding on Union and State governments, Tamil Nadu Finance Minister PTR Palanivel Thiaga Rajan told reporters in Madurai on Thursday that though the actions of the Centre, Governor, and President were against federalism, the court’s orders clearly establish States’ rights and powers of the council of ministers on constitutional ground. He also pointed to the court’s order on Wednesday sanctioning the release of AG Perarivalan in the Rajiv Gandhi assassination case to buttress his point.

The council can’t force governments to follow its recommendations, he said. “More than 20 recommendations passed by the State Cabinet for ceremonial approval from the Governor are still awaiting nod. This is against democracy. Where is the need for an elected body, if they decide it,” the minister asked.

Due to improper planning and inaccurate policies, the GST has not yielded expected results over the years.
“We have been highlighting that States would lose power because of GST. What if the GST council decides on its own and makes change to the tax portal before or after the recommendations are approved by the government? We have to pay because the portal won’t accept it otherwise,” he said. The minister in a tweet said the GST regime ‘requires a complete overhaul’, and recalled that he had in May 2021 described the GST Council as a ‘constitutional oddity’.