Union Government of India brought One Nation One Tax rule and introduced Goods and Service Tax. They have appointed GST Council to recommend the important directives before drafting laws.
Supreme Court in its judgement regarding levying IGST on Ocean freight, said that GST Council is just a persuasive body that can give recommendations to draft laws for Union and State Governments regarding GST and both parties are not bound to follow them.
Both can form their own laws in case of repugnancy as there is no rule to follow Union Government directives to State Governments. This judgement signifies that State Governments can act independently in case of GST laws if there is repugnancy.
It also stated that Indian cooperative federalism between states and union governments should not be compromised under any condition. So, State Governments can form their own GST laws and not look at Union Governments approval all the time.