Understanding The Selection Process And The Role Of GST Council

A GST Council is an administering body to control and direct every single step for the execution of products and services tax in the country with choices over tax rates and further execution measures. GST board absorbs recommendations and guidelines into one shape and helps the progressions officially through notices and circulars with its various departments the ministry of finance.

The Cabinet Ministry has given the approval for the implementation of the GST Council while the notice with respect to the foundation of Council was given on Saturday, September 10th, 2016, and then it came into effect on Monday, September 12th, 2016. Additionally, Article 279A having arrangements with respect to the foundation of the GST Council was embedded after Article 279 of The Constitution  (One Hundred And First Amendment) Act, 2016. The Union Finance Minister Mr. Arun Jaitley who is the leader of the GST Council while the First Meeting of the board was hung on 22nd and 23rd September 2016 in New Delhi.

Who Is A Part Of The GST Council?

As per Article 279A, it is the Prime Minister ‘s duty to issue an order to appoint the GST Council inside 60 days of September 12, 2016.

The following are the members who make up the GST Council.

  • The Union Finance Minister – Chairman of the GST Council
  • The Union Minister of State looks after revenue and finance, he is a member of the GST Council.
  • One member from each state responsible for finance or tax collection or any other minister and any of them would be Vice-Chairman of the GST Council, they will be appointed by one another.
  • The Chairperson of the Central Excise and Customs Board will become the permanent invitee throughout all GST Council hearings who would not have the right to vote.
  • The Revenue Department Secretary will act as EX-Officio Secretary to the GST Council.

What Are The Functions Of The GST Council?

The GST Council are required to recommend changes and suggestions to the Union as well as to the State on the mentioned matters:-

  • Special arrangements should be made for the following states: Assam, Arunachal Pradesh, Manipur, Jammu and Kashmir, Mizoram, Meghalaya, Sikkim, Meghalaya, Himachal Pradesh, Tripura, and Uttarakhand.
  • On absorbing various taxes, cessation, and surcharges in the GST.
  • On GST slabs like floor-rate with GST ranges and any other rate for the time being to allocate services to cope with any natural catastrophe.
  • Details about goods and services on which GST will be imposed.
  • Details about goods and services on which GST will not be imposed.
  • On the cutoff value under which goods and services are exempt from GST Tax.

The Decision Making Process Of The GST Council

For a legitimate meeting of the members from the GST Council, at any rate, 50 percent of the overall number of the members ought to be in attendance at the gathering.

Each Decision made during the gathering ought to be bolstered by in any event 75 percent greater part of the weighted votes of the members who are in attendance and vote. In “article 279A” a guideline is mentioned which separates the complete weighted vote cast between Central Government and State Government:-

  • “The vote of the Central Government shall have a weightage of one-third of the total votes cast”
  • “The votes of all the State Governments taken together shall have a weightage of two-thirds of the total votes cast, in that meeting”

Any act, judgment or procedure must also not be deemed void on the grounds of any residual insufficiency at the time of its formation of the GST Council, i.e.

  • “any vacancy in, or any defect in, the constitution of the Council”
  • “any defect in the appointment of a person as a Member of the Council”
  • “any procedural irregularity of the Council not affecting the merits of the case.”

This goes to show meticulously the GST council works in order to constantly improve the GST framework in our country and boost our economic growth.

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