GST Council

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Topics Covered:

  1. Statutory, regulatory and various quasi-judicial bodies.

 

GST Council

 

What to study?

  • For Prelims: About GST Council- composition, functions and related key facts, overview of GST.
  • For Mains: Issues associated with GST, need for reforms and various measures announced in this regard.

 

Why do we need a GST Council?

The GST council is the key decision-making body that will take all important decisions regarding the GST. The GST Council dictates tax rate, tax exemption, the due date of forms, tax laws, and tax deadlines, keeping in mind special rates and provisions for some states. The predominant responsibility of the GST Council is to ensure to have one uniform tax rate for goods and services across the nation.

 

How is the GST Council structured?

The Goods and Services Tax (GST) is governed by the GST Council. Article 279 (1) of the amended Indian Constitution states that the GST Council has to be constituted by the President within 60 days of the commencement of the Article 279A.

 

According to the article, GST Council will be a joint forum for the Centre and the States. It consists of the following members:

  • The Union Finance Minister will be the Chairperson.
  • Member – the Union Minister of State in charge of Revenue or Finance.
  • The Minister in charge of finance or taxation or any other Minister nominated by each State government, as members.

 

GST Council recommendations:

Article 279A (4) specifies that the Council will make recommendations to the Union and the States on the important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws, principles that govern Place of Supply, threshold limits etc.