Discuss the composition and functions of the GST Council as proposed in the Constitution (122nd Amendment) Bill, 2014.

Published: February 6, 2016

Model Answer:
GST Council will be a constitutional body established by president of India. It’s composition will be as follows:

  • Chairman – Union Finance Minister
  • Minister of State (Finance)
  • Finance Minister as member from each state

The meetings of the GST Council can proceed with a quorum of 50 percent and decisions will be taken with at least three-fourth weighted majority voting for a resolution. All decisions of the GST Council will be made by three-fourth majority of the votes cast; the centre shall have one-third of the votes cast, and the states together shall have two-third of the votes cast.
 Functions of GST Council

  • The functions of the GST council would be to make recommendation on:
  • What taxes, cesses, and surcharges to be subsumed under the GST?
  • What goods and services are subject to, or exempted 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
  • Other related matters

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