For learning taxation

2. INTRODUCTION:-
 GST implemented on 1st July 2017 under 101st
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. 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 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

5.  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.  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. As per Article 279A, the council will make
recommendations to the Union and the states on important
issues related to GST, like
a) The goods and services that may be subjected or
exempted from GST.
b) Principles that govern Place of Supply.
c) Threshold limits.
d) GST rates.
e) Special provisions for certain states, etc.
f) Transition Provisions.

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

9.  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