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GST Council meet to discuss compensation issue, mechanism to resolve dispute

GST Council meet to discuss compensation issue, mechanism to resolve dispute GST Council meet on Monday will discuss to resolve the compensation issue between the centre and states. The Centre and Opposition-ruled states not just divided over compensation for a 'shortfall' in collections but also on the issue of a dispute resolution authority being pushed by Opposition-ruled states. 'The idea of the GST dispute settlement authority is against the very basic tenets of the Constitution, which are based on the principle of separation of powers and clearly defines the sovereignty of the legislature. Such a proposal, though already rejected by Parliament, would be akin to suggest that if there are some disputes among the political parties in Parliament or say, between Rajya Sabha and Lok Sabha, then such disputes be referred to a judicial body,' said a source. The Constitutional amendment for GST provided for the GST Council, comprising state and Union finance ministers, to evolve a mechanism. Flowing from that, the all-powerful decision-making body has referred some of the issues to various ministerial panels and committees, comprising officers to evolve a consensus on some of the contentious issues.

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