Union Cabinet approves formation of GST Council
The Union Cabinet has approved the process, formation and functioning of the Goods and Services Tax (GST) Council as per the Article 279A of the Constitution.
Decision in this regard was taken by the Union Cabinet meeting chaired by Prime Minister Narendra Modi in New Delhi.
Cabinet also approved
- Creation of the GST Council Secretariat with its office at New Delhi.
- Appointment of the Secretary (Revenue) as the Ex-officio Secretary to the GST Council.
- Inclusion of the Central Board of Excise and Customs (CBEC) Chairperson as a permanent invitee to all proceedings of the GST Council. He will have no voting rights in GST Council.
- Creation of one post of Additional Secretary and four posts of Commissioner to the GST Council in the GST Council Secretariat.
- The Constitution (One Hundred and Twenty-second Amendment) Bill, 2016, for introduction of GST in the country was accorded assent by the President after it was ratified by 18 states.
- After the assent to bill it became law and was notified as the Constitution (One Hundred and First Amendment) Act, 2016.
- The Constitution (One Hundred and First Amendment) Act, 2016 adds Article 279A in the Constitution.
- As per Article 279A (1) of the amended Constitution, GST Council has to be constituted by the President within 60 days of the commencement of Article 279A.
Composition of GST Council
As per Article 279A of the amended Constitution, GST Council which will be a joint forum of the Centre and the States. It shall consist of the following composition
- Union Finance Minister (Chairperson).
- The Union Minister of State (MoS) in-charge of Revenue of finance (Member)
- The Minister In-charge of taxation or finance or any other Minister nominated by each State Government (Members)
Functions of GST Council
As per Article 279A (4), the Council will make recommendations to the Union and the States on important issues related to GST, like
- Goods and services that may be subjected or exempted from GST.
- Model GST Laws.
- Principles that govern Place of Supply, threshold limits, GST rates
- GST rates will including the floor rates with bands, special rates for raising additional resources during natural disasters/ calamities, special provisions for certain States, etc.
Categories: India Current Affairs 2018