Constitutional Provisions relating to GST | B.Com, CA, CMA, CS, MBA, LLB

GST Council: Article 279A

• Article 279A of the constitution empowers the President to constitute the goods and service tax Council (GST Council). 
• The GST Council which will be a joint forum of the Central and State Government shall consist of the following members.

1. Union Finance Minister [Chairperson]
2. The Union Minister of state in charge of revenue of finance [Member]
3. The Minister in charge of finance or taxation or any other Minister nominated by each state government [Members] 

• The members of the goods and service tax council (GST Council) may be, choose one amongst themselves to be the vice-chairperson of the council for such a period as they may decide. [Clause 2(c)]

What would be the role of the GST Council?

The GST Council make recommendations to the Union and the states on -

• The taxes, cesses and surcharges levied by the union, the states and the local bodies 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 the goods and services may be exempted from GST.
• The rates include floor rates with bands of GST.
• Any special rate or rates for a specified period to raise additional resources during any natural calamity or disaster.
• Special provision with respect to the North East States ( Arunachal Pradesh, Assam, Manipur, meghalaya, Mizoram, Nagaland, Sikkim, Tripura), Jammu and Kashmir,  Himachal Pradesh and Uttarakhand.
• The date on which the GST shall be levied on petroleum crude, high speed diesel, motor spirit (i.e. petrol), natural gas, aviation turbine fuel.
• Any other matter relating to the GST, as the Council may decide.

What is the guiding principle of GST Council?

• The mechanism of the GST Council would ensure harmonization of different aspects of GST between the Centre and the States as well as among States.
• The GST council, in its discharge of various functions, shall be guided by the need for a harmonized structure of GST and for the development of a harmonized national market for goods and services. 

How are decisions taken by the GST Council?

• 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.
• The vote of the central government shall have a weightage of one-third of the votes cast and the votes of all the state governments taken together shall have a weightage of two-third of the total votes cast in that meeting.
• One-half of the total number of members of the GST Council shall constitute the quorum at its meeting.

What is the validity of GST Council proceedings or actions?

No act or proceedings of the GST Council shall be invalid merely by reason of -

• Any vacancy in, or any defect in, the constitution of the Council; or
• Any defect in the appointment of a person as a member of the Council; or
• Any procedural irregularity of the Council not affecting the merits of the case.