Centre working on a detailed mechanism to resolve GST disputes raised by states
The upcoming GST Council meet, which is likely to take place this month, might see a discussion on a mechanism that can resolve GST disputes raised by states, according to an ET report. It added that the finance ministry is currently working on the mechanism.
The plan, which comes after the recent Supreme court, ruling that GST Council recommendations are not binding on the states or the Centre, includes a dispute redressal bench. The bench will have representation from states, the Centre, and independent law and tax experts well versed in legal and economic implications. There will be detailed guidelines on which cases can be referred to such a process.
“We are working on the procedures of the dispute resolution mechanism, which some of the states have been demanding. This is under discussion. Once the draft is ready, we will take it up to the council, which will make the final call," said the report quoting an official.
The Centre May 31 said it has released the entire amount of GST Compensation to states, which was due up to May 31, 2022. In a statement, the finance ministry said the government has released an amount of Rs 86,912 crore to the states as part of the GST compensation dues.
