GST CoUNCIl.pptx

For learning taxation

1. GST COUNCIL

2. GST COUNCIL INTRODUCTION:- GST implemented on 1 st July 2017 under 101 st Amendment by the Finance Minister, Mr . Arun Jaitley. It replaced all other form of indirect taxation and became the uniform, comprehensive and a destination-based form of indirect tax. Government of India formed GST Council to ensure that the rules of GST would be implemented in all parts of India and that every eligible establishment would abide by the GST rules. So , the GST Council became the governing body of GST implementation in India.

3. GST COUNCIL CONTENTS:- Creation of the GST Council Need for GST Council Features of the GST Council Structure of the GST Council Powers of the GST Council Functions of the GST Council Provisions for amendments

4. CREATION OF THE GST COUNCIL Creation of the GST Council was facilitated by the Constitution (122nd Amendment) Bill 2016 was approved by the President of India on 8th September 2016 . The objective of the Bill was to introduce  GST in India .  Thereafter, the notification for enforcing Article 279A (GST COUNCIL)was issued on 10th September 2016 and the Article came into effect from 12th September 2016 . On this date, in a Union Cabinet meeting, the establishment of the GST Council was approved along with the establishment of the GST Council’s Secretariat. The Finance Minister at the time, Mr. Arun Jaitley, also convened the first meeting of the GST Council on 26th and 27th September 2016.

5. NEED OF THE GST COUNCIL  GST Council is the governing body for the implementation of GST rules in India. It is tasked with the duties to make important decisions and changes in GST. The GST Council is authorized to determine the rate of tax applicable under the GST model, tax exemption rules, the due date of submitting GST forms, tax related laws and deadlines and special exemptions for some States of India. The GST Council is tasked to ensure that one uniform rate of GST is applied on goods and services all across India.

6. STRUCTURE OF THE GST COUNCIL The structure of the GST Council is determined by Article 279 (1) of the amended Constitution of India. This Article states that the GST Council should be constituted by the President of India within a period of 60 days of the inception of Article 279A. The Article states that GST Council should be joint forum of the Central Government as well as the State Governments. It would consist of the following members – The Chairperson of the council would be the Union Finance Minister of the country. The Union Minister of State would be a member of the GST Council. He/she would be in charge of Revenue of Finance The members of the GST Council would be the minister who is in charge of finance or taxation or any other minister as nominated by the respective State Governments. Each State Government would nominate one minister to act as a member of the GST Council

7. POWERS OF GST COUNCIL As per Article 279A, the council will make recommendations to the Union and the states on important issues related to GST, like The goods and services that may be subjected or exempted from GST. Principles that govern Place of Supply. Threshold limits. GST rates. Special provisions for certain states, etc. Transition Provisions.

8. FUNCTIONS OF GST COUNCIL GST Council under the constitution is required to make recommendations on the following: The taxes, cesses and surcharges which may be subsumed in the goods and services tax, The goods and services that may be subjected to, or exempted from the GST, model GST Laws, principles of levy, apportionment of IGST and the principles that govern the place of supply, The threshold limit of turnover below which goods and services may be exempted from GST, GST rates including floor rates, Any special rates for a specified period, to raise additional resources during any natural calamity or disaster, Special provision with respect to the states of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand and Any other matter related to the GST, as the Council may decide

9. Constitution Amendments Article 246A This article grants power t center and state governments to make laws with respect to GST imposed by central or such state Centre has the exclusive power in respect to GST in case of inter-state supply of goods and/or services.

10. Article 265: Article 265 of the Constitution of India prohibits arbitrary collection of tax. It states that “no tax shall be levied or collected except by authority of law”. The term “authority of law” means that tax proposed to be levied must be within the legislative competence of the Legislature imposing the tax. Article 245: Part XI of the Constitution deals with relationship between the Union and States. The power for enacting the laws is conferred on the Parliament and on the Legislature of a State by Article 245 of the Constitution .

11. The said Article provides as under: Subject to the provisions of this Constitution, Parliament may make laws for the whole or any part of the territory of India, and the legislature of a State may make laws for the whole or any part of the State. Article 246: It gives the respective authority to Union and State Governments for levying tax.

12. Article 246A: Power to make laws with respect to Goods and Services Tax : Newly inserted Article 246A Notwithstanding anything contained in Articles 246, the Legislature of every State, have power to make laws with respect to goods and services tax imposed by the Union or by such State. Parliament has exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place in the course of inter-State trade or commerce .

13. This article grants power to Centre and State Governments to make laws with respect to GST imposed by Centre or such State Centre has the exclusive power to make laws with respect to GST in case of inter-State supply of goods and/or services . However, in respect to the following goods, the aforesaid provisions shall apply from the date recommended by the GST Council : PETROLEUM CRUDE HIGH SPEED DIESEL MOTOR SPIRIT (PETROL) NATURAL GAS AVIATION TURBINE FUEL