GST COUNCIL - ECONOMY
News: There
has been steady erosion of federalism and consensus at GST Council, says Amit
Mitra
What's in the news?
● Describing
the GST Council as the only institution in the country that is totally
federalist, former West Bengal Finance Minister Amit Mitra said there has been
steady erosion in both federalism as well as consensus-making in the GST
Council.
What is the GST Council?
● The
GST Council is a joint forum of the Centre and the states was set up by the
President as per Article 279A (1) of
the amended Constitution (Hence, It is a constitutional body).
Composition of GST Council:
It
shall consist of the following.
● 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)
● One-half
of the total number of Members of the Goods and Services Tax Council shall
constitute the quorum at its meetings.
● Central
Government - ⅓ rd voting power
● State
Government - ⅔ rd voting power
● Decisions not binding
(as per recent SC judgement).
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
● Taxes,
Cesses, and surcharges to be subsumed under the GST.
● Goods
and services which may be subject to, or exempt from GST.
● The
threshold limit of turnover for application of GST.
● Rates
of GST.
● Model
GST laws, principles of levy, apportionment of IGST and principles related to
place of supply.
● Special
provisions with respect to the eight north eastern states, Himachal Pradesh,
Jammu and Kashmir and Uttarakhand.
● GST
rates will include the floor rates with bands, special rates for raising
additional resources during natural disasters/ calamities, special provisions
for certain States, etc.