Contents:

Acknowledgement

Introduction

GST Council means

Functions of the GST Council

Members of GST Council

Power

Meetings

Quorum for GST Council Meetings

Bibliography
GST(The Goods and Services Tax)

In the year 2000, the then Prime Minister introduced the concept of GST
and set up a committee to design a GST model for the country. In 2003, the
Central Government formed a taskforce on Fiscal Responsibility and
Budget Management, which in 2004 recommended GST to replace the
existing tax regime by introducing a comprehensive tax on all goods and
services replacing Central level VAT and State level VATs. It
recommended replacing all indirect taxes except the customs duty with
value added tax on all goods and services with complete set off in all
stages of the value chain.

The movement towards GST was articulated by the then Union Finance
Minister in his Budget speech for 2006-07. Initially, it was proposed that
GST would be introduced from 1st April 2010.The Empowered Committee
of State Finance Ministers (EC) which had formulated the design of State
VAT was requested to come up with a roadmap and structure for GST.
Joint Working Groups of officials having representatives of the States as
well as the Centre were set up to examine various aspects of GST and
draw up reports specifically on exemptions and thresholds, taxation of
services and taxation of inter-State supplies. Based on discussions within
and between it and the Central Government, the EC released its First
Discussion Paper (FDP) on the GST in November, 2009. This spelt out
features of the proposed GST and has formed the basis for discussion
between the Centre and the States so far.
The introduction of the Goods and Services Tax (GST) is a very significant
step in the field of indirect tax reforms in India. By amalgamating a large
number of Central and State taxes into a single tax, GST will mitigate ill
effects of cascading or double taxation in a major way and pave the way for
a common national market. From the consumers point of view, the biggest
advantage would be in terms of reduction in the overall tax burden on
goods, which is currently estimated to be around 25%-30%. It would also
imply that the actual burden of indirect taxes on goods and services would
be much more transparent to the consumer. Introduction of GST would also
make Indian products competitive in the domestic and international markets
owing to the full neutralization of input taxes across the value chain of
production and distribution. Studies show that this would have a boosting
impact on economic growth. Last but not the least, this tax, because of its
transparent and self-policing character, would be easier to administer. It
would also encourage a shift from the informal to formal economy. The
government proposes to introduce GST with effect from 1st July 2017.
GST Council means

According to Article 279A of the Constitution, the GST Council has to be

constituted by the President within 60 days of the commencement of Article
279A. The notification for bringing into force Article 279A with effect from
12th September, 2016 was issued on 10th September, 2016.

GST Council is the main decision-making body that has been formed to
finalize the design of GST. This governing body of GST comprises of Union
Finance Minister – Arun Jaitley, who is the Chairman of the council, the
Minister of State (Revenue) and the State Finance/ Taxation Ministers. The
duty of the Council is to make recommendations to the Union and the
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.

Functions of the GST Council

GST Council is basically entrusted with task to make recommendations on

the different aspects of GST to the Union as well as states.

GST Council under the Constitution is required to make

recommendations on the following:

 (a) the taxes, cesses and surcharges which may be subsumed in the

goods and services tax;

  (b) the goods and services that may be subjected to, or exempted

from the goods and services tax;

 (c) model GST Laws, principles of levy, apportionment of IGST and

the principles that govern the place of supply;

 (d) the threshold limit of turnover below which goods and services

may be exempted from goods and services tax;

 (e) GST rates including floor rates;

 (f) any special rates for a specified period, to raise additional

resources during any natural calamity or disaster;

 (g) special provision with respect to the States of Arunachal Pradesh,

Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram,

Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and

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

The GST Council shall also recommend the date on which GST will be
levied on petroleum crude, high speed diesel, motor spirit (commonly
known as petrol), natural gas and aviation turbine fuel.
Members:

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.

The GST Council is a joint forum of the Centre and the States, and consists
of the following members:

1. Chairperson- Union Finance Minister

2. Vice chairperson- to be chosen from amongst the members of

Ministers of State government

3. Members-

o (a) The Union Minister of State, in-charge of Revenue/Finance

o (b) The Minister In-charge of finance or taxation or any other

Minister nominated by each State Government

Power of GST council recommendations in

nature:
As per Article 279A (4), the Council will make recommendations to the
Union and the States on important issues related to GST, like
  a) The goods and services that may be subjected or exempted from

GST.

 b) Principles that govern Place of Supply.

 c) Threshold limits.

 d) GST rates including the floor rates with bands, special rates for

raising additional resources during natural calamities/disasters

or RNR

 e) Special provisions for certain States, etc.

 f) Transition Provisions

GST Council meetings

The GST Council meets to discuss and lay GST laws that will benefit dealers across the
nation. The outcome of the previous latest GST Council meet was that the Council
decided to implement GST provisions on e-way bills that requires goods of more than
Rs.50,000 in value to be registered online before they can be moved. They have also
extended the deadline to file GSTR-1.

The Council will also set up anti-profiteering screening committees that will make the
National Anti-Profiteering Authority stronger under the GST law.

Other than laying GST laws, the GST Council have taken decisions as such:
  The threshold limit for exemption of GST would be set at Rs.20 lakh per year for

all States (except for special category states)

 The threshold for special States is set at Rs 10 lakh per year

 For composition scheme is set at Rs. 75 lakh for all States (except for the North

East States and Himachal Pradesh – Set at Rs 50 lakh per year)

 Ice cream, tobacco, pan masala, and other edible ice manufacturers shall not be

eligible for composition levy (except for restaurant services)

GST Council also looks into drafting GST rules on registration, payment, valuation, input
tax credit, composition, return, refund and invoice, and transitional provisions, among
other things.

Quorum for GST Council Meetings

 The quorum of GST council is 50% of total members
 Decision is taken by 3/4th majority (75%), wherein-
o (a) the Central Government would have the weightage of 1/3rd
of the total vote cast, and
o (b) the State Governments would have a weightage of 2/3rd of
the total votes cast
Bibliography

Sites:

# https://cleartax.in/s/gst-council

# https://www.jiogst.com/gst-faqs/-

# gstcouncil.gov.in/gst-council

# https://blog.saginfotech.com

# https://www.moneycontrol.com