GST COUNCIL (Syllabus: GS Paper 3 – Economy)

Context: The Goods and Services Tax Council is set to discuss a proposal to lower the upfront payment needed before filing a tax appeal from the current 10% to 7% of the disputed tax amount.

GST Council

• 101st Amendment Act of 2016: It also referred to as the 122nd Amendment Bill, laid the groundwork for the introduction of GST.
• Article 279-A: The GST Council functions as a collaborative platform involving both the Central and state governments.

oIt grants the President the power to establish the GST Council through an executive order.

• Composition: The GST Council's membership includes key figures like the Union Finance Minister (serving as the chairperson) and the Union Minister of State (Finance), representing various states.
• Function: To provide recommendations to both the Union and the states on crucial GST-related matters, encompassing the taxation of goods and services, exemptions, and the formulation of model GST Laws.
• Decision of the Council: The GST Council takes decisions through a consensus-based approach.

-Every decision of the GST Council shall be taken by a majority of not less than three-fourths (75%) of the weighted votes of the members present and voting.

-The weightage of one-third of the total votes cast to the Centre and a weightage of two-thirds of the total votes cast to the States, promoting the spirit of the co-operative federalism