As we pointed out earlier, GST Council is a recommendatory body it recommends both the Centre and the States as to what should be the policies, what should be the laws, what should be the rules and regulations but at the end of the day both the Union and the State are sovereign in their own rights. 

Therefore, it is quite possible that either the Centre or the States do not agree to what the GST Council says or it is also possible that in the fine tuning in the detailing, there is a deviation from what the GST Council has recommended. This deviation or non-acceptance of what the GST Council has said can lead to disputes. 

Therefore, there is a need for a dispute settlement mechanism at a level at which the disputes between the Centre and the States or between one State with other States or between two States etc. can be resolved. 

This mechanism has been addressed by way of a policy in the Constitution. The policy is, that the GST Council has been entrusted with the responsibility to devise mechanism for adjudication of these disputes. Currently, there is no such policy which has been implemented and it is expected that GST Council will come out with the modalities for adjudication in near future.