India’s Goods and Services Tax (GST), which replaced a complex web of central and state indirect taxes when it came into force on July 1, 2017, has now been in operation for nearly nine years. As the GST framework has matured, courts and quasi-judicial authorities have been called upon to resolve numerous legal disputes arising under the new system.
GST: The Constitutional Foundation
The GST was introduced through the Constitution (101st Amendment) Act, 2016, which inserted Article 246A, enabling both Parliament and state legislatures to legislate on GST simultaneously. The Central GST Act, 2017, the Integrated GST Act, 2017, and the State GST Acts form the core legislative framework.
Key Disputes Before Courts
Courts have been asked to resolve a variety of complex GST questions, including: the scope of exemptions, the classification of goods and services, the validity of anti-profiteering provisions, the applicability of GST to real estate transactions, and the validity of retrospective amendments to the GST law.
The Supreme Court in Mohit Minerals Private Limited v. Union of India (2022) addressed the important question of who can challenge the recommendations of the GST Council, holding that the GST Council’s recommendations do not have binding effect on Parliament or state legislatures but are persuasive.
GST Council and Cooperative Federalism
The GST Council — a constitutional body comprising the Union Finance Minister and state Finance Ministers — has been at the centre of key policy decisions on GST rates and classifications. The functioning of the Council reflects India’s cooperative federalism model, with decisions requiring a three-fourths majority.
Compliance and Simplification
One of the ongoing challenges with GST is the complexity of compliance, particularly for small and medium enterprises. The government has been working on simplification measures, including streamlining return filing procedures and rationalising GST rates across categories of goods and services.
Anti-Profiteering Measures
The GST law includes anti-profiteering provisions designed to ensure that the benefits of reduced tax rates are passed on to consumers. The National Anti-Profiteering Authority (NAA), which adjudicated complaints under this provision, has now been wound up, with anti-profiteering matters being handled by the Competition Commission of India (CCI).
Source: GST Council & Supreme Court of India | Analysis: Justice Order | June 2026
