Do you know with whose help the laws or procedures under the Goods and Services Tax system are made If you do not know, then you have come to the right place. The Government of India has entrusted the GST Council (Council) to introduce new laws or procedures under the Goods and Services Tax. In this article, we will talk about this and know what is the GST Council? Why is it needed? How is it structured? Or some features of the Goods and Services Tax Council?
In this article, we have tried to discuss all the important things related to GST Council (Council) according to your convenience. So, this article is a bit big. So to allow you to read it, we have divided it into smaller parts through a table of contents.
Why is the GST Council required for GST?
Under the Goods and Services Tax system, the GST Council is the main decision-making body that takes all important decisions in relation to the work done under the GST Act. The GST Council sets the tax rate, tax exemption, due date of forms or tax laws, and tax time limits for certain states in view of special rates and provisions. The main responsibility of the GST Council (Council) is to ensure the uniform tax rate for goods and services across India.
How is the GST Council structured?
The Goods and Services Tax Law was promulgated by the GST Council and is governed by the GST Council. It states in amended Indian Constitution “clause 1of article 279”, that the president will constitute the GST within 60 days from the commencement of Article 249-A.
According to the article, there is a joint forum for the Center and the states under the GST Council. It seems of the following members: -
Union Finance Minister, as the Chairman.
As a member, Union Minister of State in charge of Revenue.
Minister in charge of Finance or Taxation or any other Minister nominated by each State Government as a member.
Article 279A (4) under the Goods and Services Tax specifies that the Council provides recommendations to the Union and the States on important issues related to GST. For example, goods and services were exempted from the Goods and Services Tax.
Such institutions implement GST laws or principles which govern the following: -
Place of supply
GST rate on goods and services.
Special rates for raising additional resources during a natural disaster or disaster.
Special GST rates for some states.
What are the features of GST Council?
Do you know? The GST Council institution also has certain characteristics. This makes it extremely important for the Goods and Services Tax system. Let us try to learn about some of its features one by one below.
The GST Council has its office in New Delhi.
The Revenue Secretary in the GST Council is appointed as Secretary according to the post.
The Central Board of Excise and Customs (CBEC) have been included as the permanent invitee (non-voting) chairman for all proceedings of the GST Council.
Create a post for additional secretary of GST Council.
Create four posts of Commissioner in GST Council Secretariat (this is at the level of Joint Secretary)
The GST Council Secretariat will have officials from both the Central and State governments on deputation.
Note: - The GST Council is managed by the GST Council Secretariat. Or the GST Council Secretariat is operated by officers drawn on deputation from both the Central and State Governments. In the first meeting for the creation of the Council, the Cabinet provided sufficient funds to meet the recurring and non-recurring expenditure of the GST Council Secretariat. The entire cost of managing the GST Council Secretariat is borne by the Central Government.
When was the GST Council formed?
The process of formation of the GST Council to implement the Goods and Service Tax system was initiated in India when the Bill, under the Constitution 122 Amendment, was approved by the President on 8 September 2016.
According to the amended constitution, mention under clause 1 of article 279A that the President will constitute the GST council within 60 days of the starting of Article 279A.
But thereafter, a notification to implement Article 279A with effect from 12 September 2016 was issued on 10 September 2016.
After the consent of the GST Bill, the Union Cabinet approved the establishment of the GST Council and its Secretariat in its meeting held on 12 September 2016. Apart from this, Finance Minister Lt. Mr. Arun Jaitley was decided to convene the first meeting of the GST Council on 22 and 23 September 2016 in New Delhi.
What are the functions of GST Council?
A lot of work is done under the GST law. Those are decided by the GST Council. Some similar functions are explained below one by one.
Taxes, Cesses and Surcharges to be covered under GST.
Goods and services may be subject to GST or exempt.
Maximum value of turnover for GST operations.
Principles relating to GST law, principles of levy, approval of IGST and place of supply.
Special provisions (Special Economic Zones) and other related matters in relation to the eight North Eastern States, Himachal Pradesh, Jammu and Kashmir and Uttarakhand.
Other matters related to the implementation and regulation of GST in India
Important: GST council arranges meetings time to time for modification or amendments in the Act.