What Is Gst Council?

The Government of India (GoI) introduced the GST Council to modify, regulate and reconcile the goods and services tax in India. The Council replace all the existing multiple taxation process and introduce new taxation methods to ease the taxation process for the taxpayers. The Council shall also monitor all the taxation process to provide support to the respective departments and to avoid the fraudulent process. In this article, we look into the GST Council and understand one of the key councils that regulate all aspects of GST in India.

Creating GST Council

The process for creating GST Council started in India when the Constitution (One Hundred and Twenty-second Amendment) Bill 2016, for the introduction of Goods and Services Tax (GST) was accorded assent by the President on 8th September 2016. As per Article 279A (1) of the amended Constitution, the president should approve to constitute within 60 days of the commencement of Article 279A. On 10th September 2016, the notification stated to bring Article 279A into force with effect from 12th September 2016. Following the assent of GST Bill, the Union Cabinet in a meeting held on 12th September 2016 approved setting-up of GST Council and setting-up of its Secretariat. Further, Finance Minister Shri Arun Jaitley also decided to call the First Meeting was conducted on 22nd and 23rd September 2016 in New Delhi. The press release below by the Ministry of Finance, shows the announcement for the implementation of GST Council:

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Members

The GST Council consists of the following members:

The Union Finance Minister (as Chairman).
The Union Minister of State in-charge of Revenue or Finance.
The Minister in charge of Finance or Taxation or any other Minister, nominated by each State Government.

In the Union Cabinet meeting held on 12th September 2016, it was also decided to appoint:

The Secretary (Revenue) as the Ex-officio Secretary.
The Chairperson, Central Board of Excise and Custom (CBEC), as a permanent invitee (non-voting) to all proceedings of the Council.
One post of Additional Secretary to the Council in the Secretariat (at the level of Additional Secretary to the Government of India).
Four posts of Commissioner in the GST Secretariat (at the level of Joint Secretary to the Government of India).

Decision Making

The GST Council will make recommendations on:

GST shall include taxes, cesses, and surcharges;
Goods and services which possibly will be subject to, or exempt from GST; The threshold maximum value of turnover for the function of GST;
Rates of GST;
GST laws, principles of levy, apportionment of IGST and principles associated with place of supply;
Special provisions with respect to the eight northeastern states, Himachal Pradesh, Jammu and Kashmir, and Uttarakhand; and other associated matters.
Other matters pertaining to the implementation and regulation of GST in India.

Secretariat

The Secretariat manages the GST Council. The Secretariat is manned by officers taken on deputation from both the Central and State Governments. In the first meeting for the creation of the Council, the Cabinet provided for adequate funds for meeting the recurring and non-recurring expenses of the Secretariat. The entire cost for managing the Secretariat is borne by the Central Government.

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Frequently Asked Questions

Common questions about GST Council Overview.

The GST Council is a constitutional body formed to implement, regulate and monitor the Goods and Services Tax (GST) in India. It is responsible for making recommendations on various aspects of GST, such as rates, exemptions, laws, and other associated matters.

The GST Council consists of the Union Finance Minister (as Chairman), the Union Minister of State in-charge of Revenue or Finance, and the Ministers in charge of Finance or Taxation from each State Government. The Secretary (Revenue) serves as the Ex-officio Secretary, and the Chairperson of the Central Board of Excise and Customs (CBEC) is a permanent invitee (non-voting).

Decisions in the GST Council are made by a majority of not less than three-fourths of the weighted votes of the members present and voting. The vote of the Central Government has a weightage of one-third of the total votes cast, and the votes of all the State Governments together have a weightage of two-thirds of the total votes cast.

The GST Council Secretariat manages the day-to-day operations of the Council. It is manned by officers taken on deputation from both the Central and State Governments. The Secretariat's expenses are borne by the Central Government.

The process for creating the GST Council started when the Constitution (One Hundred and Twenty-second Amendment) Bill 2016 for the introduction of GST was accorded assent by the President on September 8, 2016. The Union Cabinet approved setting up the GST Council and its Secretariat on September 12, 2016.

The GST Council's key responsibilities include making recommendations on the goods and services that will be subject to or exempt from GST, the threshold for GST registration, GST rates, GST laws, and principles related to the levy, apportionment of IGST, and place of supply.

The GST Council meets regularly to discuss and make decisions on various aspects of GST implementation and regulation. The frequency of meetings may vary depending on the agenda and the need for discussion and decision-making.

The GST Council's decisions can be challenged in court if they are deemed to be unconstitutional or ultra vires (beyond the legal power or authority). However, the courts generally give due deference to the Council's recommendations and decisions.

The GST Council ensures transparency by releasing official press releases and notifications regarding its decisions and recommendations. Additionally, the Council's meetings are often attended by media representatives, and the proceedings are widely reported in the news.

The GST Council comprises representatives from the Central and State Governments, which allows for the concerns and interests of different stakeholders to be addressed. The Council also seeks inputs and feedback from various industry bodies, trade associations, and other stakeholders before making decisions.