Goods and Services Tax Council

The smooth and efficient administration of the goods and services tax (GST) requires a co-operation and co-ordination between the Centre and the States. In order to facilitate this consultation process, the 101st Amendment Act of 2016 provided for the establishment of a Goods and Services Tax Council or the GST Council.

Article 279-A empowered the President to constitute a GST Council by an order22. The Council is a joint forum of the Centre and the States. It is required to make recommendations to the Centre and the States on the following matters:

(a) The taxes, cesses and surcharges levied by the Centre, the States and the local bodies that would get merged in GST.

(b) The goods and services that may be subjected to GST or exempted from GST.

(c) Model GST Laws, principles of levy, apportionment of GST levied on supplies in the course of inter-state trade or commerce and the principles that govern the place of supply.

(d) The threshold limit of turnover below which goods and services may be exempted from GST.

(e) The rates including floor rates with bands of GST.

(f) Any special rate or rates for a specified period to raise additional resources during any natural calamity or disaster.