Creation of a GST Council

Creation of a GST Council

MargThe taxation policies of India were redesigned with the introduction of the GST (Goods and Service Tax) council by the Indian Government. The Council aimed to ease the taxpayers from paying multiple indirect taxes and maintain consistency between the goods and their service tax. 

This Council is also responsible for scanning all the taxation process to ensure no deceitful operation and support other departments. This article will decipher how the GST Council is authorized and regulates a uniform tax rate under the GST model.

Creating the GST Council

The Constitution (One Hundred and Twenty-Second Amendment) Bill 2016 was granted permission by the President of Indian on the 8th of September, 2016. It marked the inauguration of Goods and Service Tax (GST) in India, and the procedure for creating the GST Council began. 

The President has the responsibility to lay down the orders regarding the constitution of the GST Cou-ncil. It is done within the first 60 days of the commencement of the Article. 

The GST Bill came into action on 12th September 2016 and resulted in a meeting of the Union Cabinet. The meeting approved the establishment of the GST council along with its Secretariat. The then Finance Minister,  Shri Arun Jaitley, called for the first meeting on the 22nd and 23rd September 2016 at the office in New Delhi. 

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Members of GST Council

The members of gst council have a joint forum of the Centre and the State:

  • Union Finance Minister- is present as the Chairman of the Council. 
  • Union Minister of State in charge of Revenue or Finance- as a member of the Council. If you want to know more about UTGST full form, click here
  • Ministers are nominated by each State Government- among which one is elected as the Vice-Chairman.

Decision making

Every decision taken in the GST Cou-ncil has to be passed by a majority of 3/4th of the members’ votes present and voting. The vote given by the Central Government has a weightage of 1/3rd of the votes cast. The votes of all the State Government accumulated should result in 2/3rd of the total vote cast in the meeting.

The GST Council is in charge of making decisions such as –

  • Taxes to be merged in GST
  • The Rates of GST
  • Exemptions to be applied
  • Special provisions in taxes in case of calamities
  • Provisions on special category states like the Northeastern States
  • Threshold limit of turnover, IGST, principles of levy and supply, GST laws, and any other concerns related to it. 

Conclusion

The GST Council is a Federal Constitutional Body that maintains a decorum in the taxation process all over the nation by implying equal rates on goods and exempting them as per requirement. 

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