The GST council, the key decision-making body that will take all important decisions regarding the GST, will have representation from the central government as well as all the state governments.
A GST Council has been constituted under Article 279A of the Constitution, comprising the Union Finance Minister (who will be the chairman of the Council), the Minister of Revenue and the State Finance or Taxation Ministers to make recommendations to the Union and the States on –
Section 2(36) of Central Goods & Services Taxes Act, 2017 defines “Council” as the Goods and Services Tax Council established under article 279A of the Constitution.
The mechanism of GST Council would ensure harmonization on different aspects of GST between the Centre and the States as well as among States.
Now, as various provisions of GST are to be enacted on the recommendations of the GST Council which itself is a body of the Centre and States represented by their Finance Ministers, therefore, the Centre & the States cannot take any different stand while enacting the provisions of GST Laws.
Nature of GST Council
The GST Council will be quasi-legislative –cum – administrative body because it functions both legislative as well as administrative duties as assigned by the Parliament to it.
Decisions of GST Council
The Constitution (One Hundred and First Amendment) Act, 2016 provides that every decision of the GST Council shall be taken at a meeting by a majority of not less than 3/4th of the weighted votes of the Members present and voting.
One half of the total number of members of the GST Council.
The Constitution (One Hundred and First Amendment) Act, 2016 provides that the GST Council shall establish a mechanism to adjudicate any dispute –
Role of the GST Council
The GST Council will oversee tax collections that at present exceed Rs.13 trillion, Further, the Council is emerging as a platform where Members from 32 States and Union Territories are taking up key issues other than indirect taxation, which has given rise to the idea of a new horizontal federal system.