GST council

GST COUNCIL

• Goods & Services Tax Council is a constitutional body for making recommendations to the Union and State Government on issues related to Goods and Service Tax.

CONSTITUTED BY:

• Article 279A of the Constitution empowers President to constitute GST Council.

MEMBERS:

• It is chaired by the Union Finance Minister.
• Other members are the Union Minister of State for Revenue or Finance and Minister in-charge of Finance or Taxation or any other minister nominated by the States.

MANDATE OF GST COUNCIL

• The Goods and Services Tax Council shall make recommendations to the Union and the States on
  • Taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be subsumed in GST.
  • Goods and services that may be subjected to, or exempted from the goods and services tax.
  • Model GST Laws and apportionment of Goods and Services Tax levied on supplies in the course of inter-State trade.
  • Threshold limit of turnover below which goods and services may be exempted from GST.
  • The rates including floor rates with bands of goods and services tax.
  • The GST Council shall recommend the date on which the goods and services tax be levied on petroleum.

QUORUM:

• One-half of the total number of Members of the Council shall constitute the quorum at its meetings.
• Every decision of the Council shall be taken by a majority of not less than three-fourths of the weighted votes of the members present and voting.

WEIGHTAGE OF VOTE:

• Vote of the Central Government shall have a weightage of one third of the total votes cast.
• Votes of all the State Governments taken together shall have a weightage of two-thirds of the total votes cast.

ADJUDICATION OF DISPUTE:

• Constitution states that GST council shall establish a mechanism to adjudicate any dispute arising out of the recommendations of the Council.
  • between the Government of India and one or more States
  • between two or more States.

PRELIMS QUESTION:

Q. Consider the following statements regarding GST council:

1. It is chaired by the Prime Minister of India.
2. It determines the rates of GST applicable across India.

Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Answer to Prelims question