Consider the following statements:
1. The GST Council makes binding recommendations on GST rates.
2. Article 246A allows States to legislate on intra-state supply of goods and services.
Which of the above is/are correct?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. Only 2.
While the GST Council recommends rates, the Supreme Court (Mohit Minerals case) ruled these are not legally binding but have persuasive value, upholding fiscal federalism. Conversely, Article 246A is correct as it grants special powers to both Parliament and State Legislatures to make laws regarding GST, specifically empowering States to legislate on intra-state supplies. Therefore, statement 1 is technically incorrect regarding "binding" legal status, while statement 2 is accurate.