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GST Council: Understanding Of The Governing Body Of GST

The idea of GST, The Goods and Services Tax is not largely unknown. The definition of a unified tax entitled Goods and Services Tax was initially suggested in 1999. GST was approved by Mr. Atal Bihari Vajpayee who was the prime minister at the time and approved it. He made the GST council in order to design the framework for the same.

The chairman of the group was the finance minister, Mr. Asim Dasgupta, under the rule of the Vajpayee rule. Nevertheless, the GST platform wasn’t fully developed during the period. The finished system was applied by Mr. Arun Jaitley, Minister of Finance, on 1 July 2017. From July 2017 onwards. GST has substituted several types of indirect taxes and has become a unified, systematic, and a destination-based form of indirect taxation. Following the adoption of the principle of GST, the Indian government has established a GST Council. The motive for setting up the Council has always been to guarantee that the GST guidelines will be enforced throughout all states of India and that every qualifying establishments would comply with the GST rules. The GST Council has, therefore, become the regulatory authority for the execution of GST in India.

GST Council Features

  • The Board of Directors is based in New Delhi
  • The Secretary of State to the GST Council is really the Secretary of Revenue of India
  • A position for the Deputy Secretary to the GST Council will be established. This position will be equal to the stage of the Deputy Secretary to the Government of India.
  • Also at the tier of the Joint Secretary of the GST Council, 4 positions of Commissioner will be established throughout the Secretariat of the GST Council.
  • The Secretariat of the GST Council will also comprise of officials selected by the Central and State Governments on a deputation grounds.
  • The Central Board of Excise and Customs (CBEC) is a chairman and a perpetual non-voting attendee to all sessions of the GST board.

Structure Of GST Board

The framework of the GST committee shall be established by Article 279(1) of the revised Indian constitution. This Article provides that now the GST council must be encompassed by the Indian president inside of 2 months of the beginnings of Article 279A. The article asserts that the GST committee ought to be a combined platform for the Indian government and the State government.

  • The President of the committee will be the finance minister of the Union of that nation. Mr. Arun Jaitley is currently the finance ministry of India and, link, he is the Chairman of the GST committee.
  • The Minister of State of the Union will be a participant of the GST committee. He/she will be in control of financial revenue.
  • The representatives of the GST committee will be the minister in charge of financial services or taxes, and any other secretary appointed by the corresponding authorities of the State. Every other Government of the state would appoint a Minister to function as a participant of the GST committee.

Formation And Need For The Goods And Services Tax Council

The establishment of a GST Council was encouraged by the Constitutional (One Hundred and Twenty-Second Amendment) Bill 2016 was authorized by the Indian President on the 8th of September 2016. The Bill ‘s aim was to implement GST in India. The notice for the enforcement of Article 279A was subsequently issued on 10 September 2016, the Article entered into force on 12th of September 2016. On that day, the creation of the GST Council, together with the formation of the Secretariat of the GST Council, had been authorized during the Union cabinet session. The Finance minister during the period, Mr. Arun Jaitley, also attended the very first session of the GST Council on the 26th and 27th of September 2016.

As explained above, the GST Council is the regulatory authority for the execution of the GST regulations in India. It’s also the responsibility of the authority to make essential choices and improvements to the GST. The GST Council is authorized to evaluate the rate of tax-relevant in accordance with the GST framework, the exempt status, the due date of submission of GST forms, the tax-relevant regulations, GST rules and time limits, and tax privileges for certain States of India.