Goods and Services Tax (GST) Council

2021 SEP 7

Preliminary   > Economic Development   >   Miscellaneous   >   Goods and Servies tax

Why in news?

  • The Goods and Services Tax (GST) Council is likely to consider a ministerial group’s report on introducing a differentiated regime for sectors where tax evasion is very high, such as brick kilns, sand mining etc.

About 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.

PRACTICE QUESTION

Which of the following statements are correct regarding ‘GST council’?

1. The council is chaired by Union Finance Minister

2. Constitution empowers President to constitute GST Council.

3. 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

Select the correct answer using the code given below:

(a) 1 only

(b) 1 and 3 only

(c) 2 and 3 only

(d) 1,2 and 3

Answer