Law4u - Made in India

How are disputes between states resolved under GST?

10-Apr-2025
GST

Answer By law4u team

1. Nature of Disputes: - Disputes may arise between states over the place of supply, apportionment of revenue, or sharing of GST collected. - Conflicts can also occur between the central government and state governments over interpretation of GST laws. 2. Resolution Mechanism Under GST Act: - The GST Council is the primary body responsible for resolving disputes related to GST. - It includes representatives from the central government and all state governments. 3. Dispute Resolution Committee (DRC): - Established under the GST Act to specifically handle disputes between states. - The committee aims to resolve issues amicably before they escalate to litigation. 4. Adjudication by GST Council: - The GST Council may constitute a mechanism or framework for resolving inter-state disputes. - It tries to achieve consensus through discussions and recommendations. 5. Judicial Intervention: - If the GST Council fails to resolve the dispute, states can approach the Supreme Court under Article 131 of the Indian Constitution. - The Supreme Court has original jurisdiction over disputes between states or between the Centre and states. 6. Examples of Disputes: - Disagreement over place of supply concerning goods and services provided across state borders. - Issues related to Integrated GST (IGST) distribution between states.

Answer By Anik

Dear Client, Disputes between States under the GST regime are resolved through mechanisms established under the Goods and Services Tax Council and constitutional provisions. Relevant Legal Provisions: Article 279A of the Constitution establishes the GST Council, which consists of the Union Finance Minister (Chairperson), State Finance Ministers, and other nominated members. The GST Council is the primary body for resolving disputes relating to GST implementation and interpretation between the Union and States or between States. Dispute Resolution Mechanism: Section 11 of the IGST Act, 2017 provides that if any dispute arises with respect to the place of supply, the matter can be referred to the GST Council. While no formal tribunal exists solely for inter-State GST disputes, the GST Council has powers to recommend solutions or form committees for adjudication. Judicial Review: In cases where GST Council mechanisms are insufficient, parties may approach the Supreme Court under Article 131 for resolving inter-State disputes (e.g., Karnataka v. Kerala on tax sharing). I hope this answer helps. In case of future queries, please feel free to contact us. Thank you.

GST Verified Advocates

Get expert legal advice instantly.

Advocate Gill Harbhajan Singh

Advocate Gill Harbhajan Singh

Banking & Finance,Cheque Bounce,Civil,Consumer Court,Criminal,Divorce,Documentation,GST,Domestic Violence,Family,High Court,Labour & Service,Landlord & Tenant,Motor Accident,Property,R.T.I,RERA,Succession Certificate,Wills Trusts,

Get Advice
Advocate Zuber Chauhan

Advocate Zuber Chauhan

Anticipatory Bail,Banking & Finance,Cheque Bounce,Child Custody,Consumer Court,Court Marriage,Criminal,Cyber Crime,Divorce,Documentation,GST,Domestic Violence,Family,High Court,Insurance,Labour & Service,Media and Entertainment,Medical Negligence,Motor Accident,Muslim Law,R.T.I,Startup,Succession Certificate,Supreme Court,Tax,Trademark & Copyright,Wills Trusts,

Get Advice
Advocate Nanduri Srinivas

Advocate Nanduri Srinivas

Anticipatory Bail, Arbitration, Armed Forces Tribunal, Bankruptcy & Insolvency, Banking & Finance, Breach of Contract, Cheque Bounce, Child Custody, Civil, Consumer Court, Corporate, Court Marriage, Customs & Central Excise, Criminal, Cyber Crime, Divorce, Documentation, GST, Domestic Violence, Family, High Court, Immigration, Insurance, International Law, Labour & Service, Landlord & Tenant, Media and Entertainment, Medical Negligence, Motor Accident, Muslim Law, NCLT, Patent, Property, R.T.I, Recovery, RERA, Startup, Succession Certificate, Supreme Court, Tax, Trademark & Copyright, Wills Trusts, Revenue

Get Advice
Advocate Avtar Singh

Advocate Avtar Singh

Anticipatory Bail, Arbitration, Bankruptcy & Insolvency, Banking & Finance, Breach of Contract, Cheque Bounce, Child Custody, Civil, Consumer Court, Corporate, Court Marriage, Customs & Central Excise, Criminal, Cyber Crime, Divorce, GST, Domestic Violence, Family, High Court, Insurance, International Law, Labour & Service, Landlord & Tenant, Media and Entertainment, Motor Accident, Muslim Law, NCLT, Patent, Property, Recovery, RERA, Startup, Supreme Court, Tax, Trademark & Copyright

Get Advice
Advocate Krishna Mohan Prasad

Advocate Krishna Mohan Prasad

Anticipatory Bail, Labour & Service, Customs & Central Excise, Cheque Bounce, Civil, Bankruptcy & Insolvency, Banking & Finance, High Court, GST, Tax

Get Advice
Advocate Pankaj Dheer

Advocate Pankaj Dheer

Anticipatory Bail, Cheque Bounce, Court Marriage, Criminal, Cyber Crime, Divorce, Domestic Violence, Family, High Court, Motor Accident, Muslim Law, R.T.I, GST, Succession Certificate, Medical Negligence

Get Advice
Advocate Anuj Yadav

Advocate Anuj Yadav

Anticipatory Bail, Cheque Bounce, Child Custody, Civil, Corporate, Court Marriage, Consumer Court, Customs & Central Excise, Cyber Crime, Criminal, Divorce, Documentation, GST, Domestic Violence, Family, High Court, Labour & Service, Insurance, Motor Accident, Property, Trademark & Copyright, Supreme Court, Revenue, Banking & Finance, R.T.I, Recovery

Get Advice
Advocate Suganpal

Advocate Suganpal

GST, Tax, Trademark & Copyright, Labour & Service, RERA

Get Advice
Advocate Swaroop Daiya

Advocate Swaroop Daiya

Criminal, Court Marriage, Anticipatory Bail, Arbitration, Bankruptcy & Insolvency, Banking & Finance, Breach of Contract, Cheque Bounce, Child Custody, Civil, Consumer Court, Corporate, Customs & Central Excise, Divorce, Documentation, GST, Domestic Violence, Cyber Crime, Family, High Court, International Law, Insurance, Immigration, Labour & Service, Landlord & Tenant, Media and Entertainment, Medical Negligence, Muslim Law, Motor Accident, NCLT, Patent, RERA, Recovery, R.T.I, Property, Startup, Supreme Court, Succession Certificate, Tax, Wills Trusts, Trademark & Copyright, Revenue

Get Advice
Advocate Sundar Singh Tomar

Advocate Sundar Singh Tomar

Anticipatory Bail, Arbitration, Armed Forces Tribunal, Bankruptcy & Insolvency, Banking & Finance, Breach of Contract, Cheque Bounce, Child Custody, Civil, Consumer Court, Corporate, Court Marriage, Customs & Central Excise, Criminal, Cyber Crime, Divorce, Documentation, GST, Domestic Violence, Family, High Court, Immigration, Insurance, International Law, Labour & Service, Landlord & Tenant, Media and Entertainment, Medical Negligence, Motor Accident, Muslim Law, NCLT, Patent, Property, R.T.I, Recovery, RERA, Startup, Succession Certificate, Supreme Court, Tax, Trademark & Copyright, Wills Trusts, Revenue

Get Advice

GST Related Questions

Discover clear and detailed answers to common questions about Breach of Contract. Learn about procedures and more in straightforward language.