GST Council

SECTION : Overview of Goods and Service Tax (GST)

  • Role of GST Council

    A GST Council would be constituted comprising the

           ·        Union Finance Minister (who will be the Chairman of the Council),

           ·        Minister of State (Revenue) and

           ·        State Finance/Taxation Ministers.


    Decisions by GST Council

    The Constitution (one hundred and first amendment) Act, 2016 provides that every decision of the GST Council shall be taken at a meeting by a majority of not less than 3/4th of the weighted votes of the Members present and voting.

           ·        The vote of the Central Government shall have a weightage of 1/3rd of the votes cast and

           ·        The votes of all the State Governments taken together shall have a weightage of 2/3rd of the total votes cast in that meeting.


    At least 50% of the members of the GST Council shall constitute the quorum at its meetings.


    They will make recommendations to the Union and the States on

    (i) the taxes, cesses and surcharges levied by the Centre, the States and the local bodies which may be 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 sprit (commonly known as petrol), natural gas and aviation turbine fuel;

    (iv) model GST laws, principles of 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- East States, J&K, Himachal Pradesh and Uttarakhand; and

    (ix) any other matter relating to the GST, as the Council may decide.


    Guiding principle of GST Council

    The mechanism of GST Council would ensure harmonization on different aspects of GST between the Centre and the States as well as among States. It has been provided in the Constitution (one hundred and first amendment) Act, 2016 that the GST Council, in its discharge of various functions, shall be guided by the need for a harmonized structure of GST and for the development of a harmonized national market for goods and services.


    Resolving Disputes under the GST regime

    The Constitution (one hundred and first amendments) Act, 2016 provides that the Goods and Services Tax Council shall establish a mechanism to adjudicate any dispute between

    (a) Government of India and one or more States; or

    (b) Government of India and any State or States on one side and one or more other Sates on the other side; or

    (c) Two or more States, arising out of the recommendations of the Council or implementation thereof.

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