GST Council – Structure and Recommendations

The GST Council was established by the Government of India (GoI) to amend, regulate, and reconcile Goods and Services Tax (GST) in India. The central government entirely covers the Secretariat’s expenditures. The Council also keeps an eye on the whole taxing process to assist the various agencies and prevent fraud. In this post, we’ll look at the GST Council and learn about one of the most important bodies in India that oversee all elements of GST.

Creating GST Council

In order to implement GST, the Constitutional (122nd Amendment) Bill (CAB for short) was introduced in Parliament and passed by Rajya Sabha on 3rd August 2016 and Lok Sabha on 8th August 2016. The CAB was passed by more than 15 states and thereafter Hon’ble President gave assent to “The Constitution (One Hundred and First Amendment) Act, 2016” on the 8th of September, 2016. Since then, the GST council and been notified, bringing into existence the Constitutional body to decide issues relating to GST.

On September 16, 2016, the Government of India issued notifications bringing into effect all the sections of CAB setting firmly into motion the rolling out of GST.

The process of forming the GST Council began in India after the President gave his assent to the Constitution Amendment Bill 2016, which introduced the Goods and Services Tax (GST). The President needs to enact any legislation within 60 days of the commencement of Article 279A, according to Article 279A (1) of the amended Constitution. On the 10th of September 2016, the notification announced that Article 279A would enter into force on the 12th of September 2016.

Following the passage of the GST Bill, the Union Cabinet authorized the formation of the GST Council and its Secretariat in a meeting held on September 12, 2016. In addition, Finance Minister Shri Arun Jaitley decided to hold the First Meeting, which was held on September 22nd and 23rd September in New Delhi.

GST Council Structure

The GST Council members are given the authority to make decisions during meetings. The GST Council is a combined forum for the Indian center and states, according to Article 279(1) of the Amended Indian Constitution. The GST council’s structure in India is:

Chairperson – Union Finance Minister

The Union Minister of State, in charge of Revenue of finance – Member

The Minister In-charge of finance or taxation or any other Minister nominated by each State Government – Members

Important Aspects of GST Council

1. The GST Council’s headquarters are in New Delhi.
2. The GST council includes the Central Board of Indirect Taxes and Customs (CBIC) as a non-voting invite chairperson to all of its meetings.
3. The Indian Revenue Secretary has been designated as the GST Council’s Ex-officio Secretary.
4. A new position for the GST Council’s Additional Secretary has been created.
5. In its Secretariat, the GST Council has created four commissioner positions (at the level of Joint Secretary)
6. The GST Council Secretariat will have from both the federal and state governments.
7. The cabinet provides recurrent and non-recurring funds for the GST Council Secretariat’s meetings and costs. The central government entirely covers the Secretariat’s expenditures.

GST Council Recommendations

The GST Council has been tasked with making recommendations to the central government and states on GST-related problems. The GST Council establishes legislation and principles that govern:

1. Place of Goods and Services Supply.
2. Threshold limit.
3. List of goods and services exempted from tax.
4. Applicable tax rate, CESS, and surcharge rates for goods and services.
5. Special GST rates and rules for some states and union territories.
6. Applicability of special GST rates during natural or man-made catastrophes to raise more funds.
7. Laws governing GST, levy principles, IGST apportionment, and other things.
8. The GST Council established anti-profiteering screening committees to enhance the National Anti-Profiteering Authority under GST.