Mohit Minerals case
Also called: Union of India v. Mohit Minerals · Topic: Constitutional Bodies: UPSC, CAG, Finance Commission and Others · NCERT: Beyond NCERT
Meaning
Union of India v. Mohit Minerals (May 2022) is the Supreme Court judgment on the status of the GST Council's decisions. The Court held that the Council's recommendations are persuasive, not binding. This means they carry weight, but Parliament and state legislatures do not have to follow them. The reason is Article 246A, which gives Parliament and the state legislatures power to make GST laws at the same time. The case matters for federalism, the sharing of power between the Union and the states. It shows the GST Council works by agreement, not by command.
Example
Under Art. 279A, the GST Council (Centre with one-third of the votes, states with two-thirds) recommends GST rates. After Mohit Minerals, a state legislature is not legally bound to make its GST law exactly match those recommendations.
Don't confuse with
- Finance Commission (Art. 280): its report is also advisory. But by convention, the government accepts its award on sharing taxes. It is a separate expert body, not a council of ministers.