What is GST Council? Explain the role and functions of the ‘GST Council’.
What is GST Council? Explain the role and functions of the ‘GST Council’.
Ans.
GST Council
Meaning
In accordance with newly inserted Article 279A of the Constitution of India, the President shall by order, constituted a Council called the “Goods and Services Tax Council” (GST Council, in short).
Exercising these powers, the President has constituted the GST Council on 15th September, 2016 with the following members:
(1) The Union Finance Minister. ………………
Chairperson
(2) The Union Minister of State in charge of Revenue/Finance Member
(3) The Minister in charge of Finance or Taxation or any other Minister nominated by each State Government Member While discharging the functions, the GST Council shall be guided by the need for a harmonized structure of Goods and Services Tax and for the development of a harmonized national market for goods and services.
Role and Functions of the GST Council
(1) The GST Council had made recommendations to the Union and the States on:
(i) The taxes, cesses and surcharge levied by the Centre, the States and the local bodies which subsumed under GST;
(ii) The goods and services that may be subjected to or exempted from the GST;
(iii) The date on which the GST shall be levied on petroleum crude, high-speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel;
(iv) Model GST laws, principles of the levy, apportionment of IGST and the principles that govern the place of supply,
(v) The threshold limit of turnover below which the goods and services may be exempted from GST;
(vi) The rates including floor rates with bands of GST;
(vii) Any special rate or rates for a specified period to raise additional resources during any natural calamity or disaster;
(viii) Special provision with respect to the North-Eastern States, J&K, Himachal Pradesh and Uttarakhand; and
(ix) Any other matter relating to the GST, as the Council may decide.
(2) The GST Council shall establish a mechanism to adjudicate any dispute:
(i) Between the Government of India and one or more States; or
(ii) Between the Government of India and any State or States on one side and one or more other States on the other side; or
(iii) Between two or more States, arising out of the recommendations of the Council or implementation thereof.
As per Article 279A(4) of the Constitution of India, the GST Council shall make recommendations to the Union and the States. It means that the Union Government and the State Governments will have the option either to accept or reject any or all the recommendations.
