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 V V Murali Krishna

Advocate V V Murali Krishna

Anticipatory Bail,Bankruptcy & Insolvency,Banking & Finance,Breach of Contract,Cheque Bounce,Civil,Consumer Court,Customs & Central Excise,Criminal,Cyber Crime,Documentation,GST,Domestic Violence,Insurance,Labour & Service,Landlord & Tenant,Medical Negligence,Motor Accident,Patent,Property,Recovery,RERA,Succession Certificate,Trademark & Copyright,Wills Trusts,Revenue

Get Advice
Advocate Saurav Sharma

Advocate Saurav Sharma

Anticipatory Bail, Arbitration, Bankruptcy & Insolvency, Banking & Finance, Breach of Contract, Cheque Bounce, Civil, Consumer Court, Corporate, Criminal, Cyber Crime, Divorce, GST, Domestic Violence, High Court, Media and Entertainment, Motor Accident, NCLT, Property, Recovery, RERA, Supreme Court, Tax, Trademark & Copyright, Revenue

Get Advice
Advocate Vikas Pathak

Advocate Vikas Pathak

Civil, Consumer Court, Corporate, Criminal, Documentation, GST, Labour & Service, Property, Tax, Customs & Central Excise

Get Advice
Advocate Dhananjay Kumar

Advocate Dhananjay Kumar

Anticipatory Bail, Arbitration, Banking & Finance, Cheque Bounce, Child Custody, Civil, Corporate, Court Marriage, Customs & Central Excise, Cyber Crime, Divorce, GST, Domestic Violence, Family, Labour & Service, Property

Get Advice
Advocate Atul Kumar Shukla

Advocate Atul Kumar Shukla

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

Get Advice
Advocate Pradeep Kumar Yadav

Advocate Pradeep Kumar Yadav

Anticipatory Bail, Cheque Bounce, Child Custody, Consumer Court, Corporate, Court Marriage, Customs & Central Excise, Criminal, Cyber Crime, Divorce, Documentation, GST, Domestic Violence, Family, High Court, Insurance, International Law, Labour & Service, Medical Negligence, Motor Accident, Muslim Law, NCLT, Patent, Property, R.T.I, Recovery, RERA, Startup, Succession Certificate, Supreme Court, Trademark & Copyright

Get Advice
Advocate Ajay Kumar Mishra

Advocate Ajay Kumar Mishra

Labour & Service, GST, Consumer Court, Corporate, Banking & Finance

Get Advice
Advocate Rajkamal Srivastava

Advocate Rajkamal Srivastava

Insurance, GST, Motor Accident, Banking & Finance, R.T.I

Get Advice
Advocate Mohan Singh Bisht

Advocate Mohan Singh Bisht

Anticipatory Bail,Cheque Bounce,Child Custody,Civil,Consumer Court,Criminal,Cyber Crime,Divorce,Documentation,GST,Domestic Violence,Family,Motor Accident,Property,Recovery,

Get Advice
Advocate Anshul Gupta

Advocate Anshul Gupta

Civil, Consumer Court, Customs & Central Excise, Divorce, Documentation, GST, Family, Patent, Trademark & Copyright, Cyber Crime

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.