The Goods and Services Tax (GST) Council was established under the 101st Constitutional Amendment Act of 2016 and functions as a joint forum for the central and state governments to discuss and make decisions regarding the administration and implementation of the Goods and Services Tax (GST). The Council is governed by Article 279A of the Indian Constitution and is responsible for ensuring a smooth and efficient administration of the GST across the country.
Composition:
- Chairperson: The Union Finance Minister acts as the Chairperson of the Council.
- Members:
➤ 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.
- The Union Revenue Secretary acts as the ex-officio Secretary to the Council.
Decision-Making:
- The quorum for conducting a meeting is one-half of the total number of members of the Council.
- Decisions are made by a majority of not less than three-fourths of the weighted votes of the members present and voting at the meeting.
- The vote of the central government carries a weightage of one-third of the total votes cast in the meeting.
Functions and Responsibilities:
➤ The Council is responsible for making decisions on important aspects of GST administration, including:
- Tax rates for goods and services.
- Exemptions and thresholds for goods and services.
- Special provisions for North-Eastern and hilly states.
- The manner in which GST revenues are to be shared between the center and the states.
➤ The Council plays a critical role in harmonizing the GST regime across states and ensuring consistency in the implementation of GST laws.
Importance:
- The GST Council plays a central role in shaping India's taxation system and creating a unified market for goods and services.
- Its decisions are crucial for the smooth implementation and administration of the GST across the country.
- The collaborative nature of the Council promotes cooperation and consensus between the center and states in matters related to the GST.
