GST Council ruling will have influence on tax structure, Centre-state relations: FM Balagopal

THIRUVANANTHAPURAM: The apex court’s ruling that the GST Council’s recommendations are not binding on the Centre and states is significant and will have far-reaching impact on tax structure and Centre-state relations, Finance Minister KN Balagopal has said.

“The ruling that the recommendations are of advisory nature will help in protecting the state’s federal rights. The verdict upholds cooperative federalism and is welcome. It justifies the stand taken by Left parties on GST. The unilateral imposition of GST and subsequent decisions have affected the revenue of states,” said Balagopal. He hoped the verdict will help in protecting the financial autonomy of states to a large extent. 

Balagopal said he, in his capacity as a member of the GST select committee in Parliament when he was a Rajya Sabha member, had pointed out the provisions that were against the interests of states. The verdict will help in bringing more transparency in protecting state’s rights, he added.