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Introduction

  • GST Council is a constitutional body constituted under Article 279 A of the Indian Constitution.
  • GST council is a joint forum of the centre and states, which recommends the union and state government on the issues related to GST. 

 

Composition of GST Council

  • Union Finance Minister as Chairperson
  • The Union Minister of State, in-charge of Revenue or Finance as Member 
  • The Minister in-charge of Finance or Taxation or any other Minister nominated by each State Government as Members. 

 

Functions of GST Council

  • The taxes, cesses and surcharges levied by the centre, the states and the local bodies that would be merged in GST.
  • The goods and services that may be subjected to GST or exempted from GST.
  • Model GST Laws, principles of levy, apportionment of GST levied on supplies in the course of inter-state trade or commerce and the principles that govern the place of supply.
  • The threshold limit of turnover below which goods and services may be exempted from GST.
  • The rates include floor rates with bands of GST.
  • Any special rate or rates for a specified period to raise additional resources during any natural calamity or disaster.
  • Special provision with respect to the states of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.
  • Any other matter relating to GST, as the Council may decide.

 

Important Points

  • The decision is taken in accordance with the following principles:
  1. The vote of the central government shall have a weightage of one-third of the total votes cast in the meeting.
  2. The votes of all the state governments combined shall have a weightage of two-thirds of the total votes cast in that meeting.
  • Any act or proceeding of the Council will not become invalid on the following grounds.
  1. Any vacancy or deficit in the constitution of the Council
  2. Any defect in the appointment of a person as a member of the Council
  3. Any procedural irregularity of the Council not affecting the merits of the case.

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