Goods & Services Tax Council is a constitutional body for making recommendations to the

Union and State Government on issues related to Goods and Service Tax. The GST Council
is chaired by the Union Finance Minister and other members are the Union State Minister of
Revenue or Finance and Ministers in-charge of Finance or Taxation of all the States.
The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2016, for
introduction of Goods and Services tax in the country was introduced in the Parliament and
passed by Rajya Sabha on 3rd August, 2016 and by Lok Sabha on 8th August, 2016.
Consequent upon this, the Hon’ble President of India accorded assent on 8th September,
2016, and the same was notified as the Constitution (One Hundred and First Amendment)
Act, 2016. As per Article 279A (1) of the amended Constitution, the GST Council has to be
constituted by the President within 60 days of the commencement of Article 279A. The
notification for bringing into force Article 279A with effect from 12th September, 2016 was
issued on 10thSeptember, 2016.

As per Article 279A of the amended Constitution, the GST Council which will be a joint
forum of the Centre and the States, shall consist of the following members: -

a. the Union Finance Minister................................................................ Chairperson;

b. the Union Minister of State in charge of Revenue or Finance................. Member;

c. the Minister in charge of Finance or Taxation or any other

Minister nominated by each State Government...................................... Members.
As per Article 279A (4), 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, model GST Laws, principles that govern Place of Supply, threshold
limits, GST rates including the floor rates with bands, special rates for raising additional
resources during natural calamities/disasters, special provisions for certain States, etc.
 The Union Cabinet in its meeting held on 12th September, 2016 approved
setting-up of GST Council and setting up its Secretariat. The Cabinet inter
alia took decisions for the following:

a. Creation of the GST Council as per Article 279A of the amended

Constitution;

b. Creation of the GST Council Secretariat, with its office at New Delhi;

c. Appointment of the Secretary (Revenue) as the Ex-Officio Secretary to the

GST Council;

d. Inclusion of the Chairperson, Central Board of Excise and Customs (CBEC),

as a permanent invitee (non-voting) to all proceedings of the GST Council;

e. Create one post of Additional Secretary to the GST Council in the GST
Council Secretariat (at the level of Additional Secretary to the Government of
India), and four posts of Commissioner in the GST Council Secretariat (at the
level of Joint Secretary to the Government of India).

The Cabinet also decided to provide for adequate funds for meeting the
recurring and non-recurring expenses of the GST Council Secretariat, the
entire cost for which shall be borne by the Central Government. The GST
Council Secretariat shall be manned by officers taken on deputation from
both the Central and State Governments.

The provisions of Article 279A of the Constitution of India with respect to

constitution of GST Council and its mandate are as below:
 GST COUNCIL
Mandate of GST Council

1. (279A.) The President shall, within sixty days from the date of commencement of the
Constitution (One Hundred and First Amendment) Act, 2016, by order, constitute a Council
to be called the Goods and Services Tax Council.

a. The Goods and Services Tax Council shall consist of the following members, namely: —
the Union Finance Minister................................................................ Chairperson;

b. the Union Minister of State in charge of Revenue or Finance................. Member;

c. the Minister in charge of Finance or Taxation or any other

Minister nominated by each State Government...................................... Members.

2. The Members of the Goods and Services Tax Council referred to in sub-clause (c) of clause
(2) shall, as soon as may be, choose one amongst themselves to be the Vice-Chairperson of
the Council for such period as they may decide.

a. The Goods and Services Tax Council shall 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;

b. the goods and services that may be subjected to, or exempted from the goods and services
tax;

c. model Goods and Services Tax Laws, principles of levy, apportionment of Goods and
Services Tax levied on supplies in the course of inter-State trade or commerce under article
269A and the principles that govern the place of supply;

d. the threshold limit of turnover below which goods and services may be exempted from goods
and services tax;
e. the rates including floor rates with bands of goods and services tax;

f. any special rate or 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, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and
Uttarakhand; and

h. any other matter relating to the goods and services tax, as the Council may decide.

3. The Goods and Services Tax Council shall recommend the date on which the goods and
services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known
as petrol), natural gas and aviation turbine fuel.

4. While discharging the functions conferred by this article, the Goods and Services Tax
Council shall be guided by the need for a harmonized structure of goods and services tax and
for the development of a harmonized national market for goods and services.

5. One-half of the total number of Members of the Goods and Services Tax Council shall
constitute the quorum at its meetings.

6. The Goods and Services Tax Council shall determine the procedure in the performance of its
functions.

a. Every decision of the Goods and Services Tax Council shall be taken at a meeting, by a
majority of not less than three-fourths of the weighted votes of the members present and
voting, in accordance with the following principles, namely: —
the vote of the Central Government shall have a weightage of one third of the total votes cast,
and

b. the votes of all the State Governments taken together shall have a weightage of two-thirds of
the total votes cast, in that meeting.
c. No act or proceedings of the Goods and Services Tax Council shall be invalid merely by
reason of—any vacancy in, or any defect in, the constitution of the Council; or

d. any defect in the appointment of a person as a Member of the Council; or

e. any procedural irregularity of the Council not affecting the merits of the case.

f. The Goods and Services Tax Council shall establish a mechanism to adjudicate any dispute
—
between the Government of India and one or more States; or

g. between the Government of India and any State or States on one side and one or more other
States on the other side; or

h. between two or more States, arising out of the recommendations of the Council or
implementation thereof.

Genesis
In the year 2000, the then Prime Minister introduced the concept of GST and set up a
committee to design a GST model for the country. In 2003, the Central Government formed a
taskforce on Fiscal Responsibility and Budget Management, which in 2004 recommended
GST to replace the existing tax regime by introducing a comprehensive tax on all goods and
services replacing Central level VAT and State level VATs. It recommended replacing all
indirect taxes except the customs duty with value added tax on all goods and services with
complete set off in all stages of the value chain.

The movement towards GST was articulated by the then Union Finance Minister in his
Budget speech for 2006-07. Initially, it was proposed that GST would be introduced from 1st
April 2010.The Empowered Committee of State Finance Ministers (EC) which had
formulated the design of State VAT was requested to come up with a roadmap and structure
for GST. Joint Working Groups of officials having representatives of the States as well as the
Centre were set up to examine various aspects of GST and draw up reports specifically on
exemptions and thresholds, taxation of services and taxation of inter-State supplies. Based on
discussions within and between it and the Central Government, the EC released its First
Discussion Paper (FDP) on the GST in November, 2009. This spelt out features of the
proposed GST and has formed the basis for discussion between the Centre and the States so
far.

The introduction of the Goods and Services Tax (GST) is a very significant step in the field
of indirect tax reforms in India. By amalgamating a large number of Central and State taxes
into a single tax, GST will mitigate ill effects of cascading or double taxation in a major way
and pave the way for a common national market. From the consumers point of view, the
biggest advantage would be in terms of reduction in the overall tax burden on goods, which is
currently estimated to be around 25%-30%. It would also imply that the actual burden of
indirect taxes on goods and services would be much more transparent to the consumer.
Introduction of GST would also make Indian products competitive in the domestic and
international markets owing to the full neutralization of input taxes across the value chain of
production and distribution. Studies show that this would have a boosting impact on
economic growth. Last but not the least, this tax, because of its transparent and self-policing
character, would be easier to administer. It would also encourage a shift from the informal to
formal economy. The government proposes to introduce GST with effect from 1st July 2017.

GST and Centre-State Financial Relations

Currently, fiscal powers between the Centre and the States are clearly demarcated in the
Constitution with almost no overlap between the respective domains. The Centre has the
powers to levy tax on the manufacture of goods (except alcoholic liquor for human
consumption, opium , narcotics etc.) while the States have the powers to levy tax on sale of
goods. In case of inter-states sales, the Centre has the powers to levy a tax (the Central Sales
Tax) but, the tax is collected and retained entirely by the originating States. As for services, it
is the Centre alone that is empowered to levy Service Tax. Since the States are not
empowered to levy any tax on the sale or purchase of goods in the course of their importation
into or exportations from India, the Centre levies and collects this tax in addition to the Basic
Customs Duty. This additional duty of customs (commonly known as CVD and SAD)
counterbalance excise duty, sales tax, State VAT and other taxes levied on the like domestic
product. Introduction of GST required amendments in the Constitution so as to empower the
Centre and the States concurrently to levy and collect GST.
The assignment of concurrent jurisdiction to the Centre and the States for the levy of GST
required a unique institutional mechanism that would ensure that decisions about the
structure, design and operation of GST are taken jointly by the two. To address all these and
other issues, the Constitution (122nd Amendment) Bill was introduced in the 16th Lok Sabha
on 19.12.2014. The Bill provides for a levy of GST on supply of all goods or services except
alcohol for human consumption. The tax shall be levied as Dual GST separately, but
concurrently the Union (CGST) and the States (SGST). The Parliament would have exclusive
power to levy GST (IGST) on inter state trade or commerce (including imports) in goods and
services. The Central Government will have the power to levy excise duty in addition to
GST, on tobacco and tobacco products.

The constitution Amendment Bill was passed by the Lok Sabha in May, 2015. The Bill with
certain amendments was finally passed in the Rajya Sabha and thereafter by the Lok Sabha in
August, 2016. Further, the Bill has been ratified by the required number of States and has
since received the assent of the President on 8th September,2016 and has been enacted as the
101st Constitution Amendment Act, 2016. The GST Council has also been notified w.e.f.
12th September,2016. GST Council is being assisted by a Secretariat.

The Goods and Service Tax Council (hereinafter referred to as, “GSTC”) comprises of the
Union Finance Minister, the Minister of State(Revenue) and the State Finance Ministers to
recommend on the GST rate, exemption and thresholds, taxes to be subsumed and other
matters. One-half of the total number of members of GSTC form quorum in meetings of
GSTC. Decision in GSTC are taken by a majority of not less than three-fourth of weighted
votes cast. Centre has one-third weightage of the total votes cast and all the states taken
together have two-third of weightage of the total votes cast.

All decisions taken by the GST Council has been arrived at through consensus. The option of
exercising a vote has not been resorted to till date.

To ensure smooth roll-out of the GST, various Committees and Sectoral groups has been
formed comprising of members from both Centre and States.

Salient features of GST

The salient features of GST are as under:
 (i)GST is applicable on ‘supply’ of goods or services as against the present concept on the
manufacture of goods or on sale of goods or on provision of services.

 (ii) GST is based on the principle of destination-based consumption taxation as against the
present principle of origin-based taxation.

 (iii) It is a dual GST with the Centre and the States simultaneously levying tax on a common
base. GST to be levied by the Centre would be called Central GST(CGST) and that to be
levied by the States would be called State GST (SGST).

 (iv) An Integrated GST (IGST) would be levied an inter-state supply (including stock
transfers) of goods or services. This shall be levied and collected by the Government of India
and such tax shall be apportioned between the Union and the States in the manner as may be
provided by Parliament by Law on the recommendation of the GST Council.

 (v) Import of goods or services would be treated as inter-state supplies and would be subject
to IGST in addition to the applicable customs duties.

 (vi) CGST, SGST & IGST would be levied at rates to be mutually agreed upon by the Centre
and the States. The rates would be notified on the recommendation of the GST Council. In a
recent meeting, the GST Council has decided that GST would be levied at four rates viz. 5%,
12%, 16% and 28%. The schedule or list of items that would fall under each of these slabs
has been worked out. In addition to these rates, a cess would be imposed on “demerit” goods
to raise resources for providing compensation to States as States may lose revenue owing to
the implementation of GST.

 (vii) GST would replace the following taxes currently levied and collected by the Centre:-

o a) Central Excise Duty

o b) Duties of Excise (Medicinal and Toilet Preparations)

o c) Additional Duties of Excise (Goods of Special Importance)

o d) Additional Duties of Excise (Textiles and Textile Products)

o e) Additional Duties of Customs (commonly known as CVD)

o f) Special Additional Duty of Customs(SAD)

o g) Service Tax

o h) Cesses and surcharge in so far as they relate to supply of goods and services.

 (viii) State taxes that would be subsumed within the GST are:-

o a) State VAT

o b) Central Sates Tax

o c) Purchase Tax

o d) Luxury Tax

o e) Entry Tax (All forms)

o f) Entertainment Tax and Amusement Tax (except those levied by the local bodies)

o g) Taxes on advertisements

o h) Taxes on lotteries, betting and gambling

o i) State cesses and surcharges in so far as they relate to supply of goods and services.

 (ix) GST would apply on all goods and services except Alcohol for human consumption.

 (x) GST on five specified petroleum products (Crude, Petrol, Diesel, ATF & Natural Gas)
would by applicable from a date to be recommended by the GSTC.

 (xi) Tobacco and tobacco products would be subject to GST. In addition, the Centre would
have the power to levy Central Excise duty on these products.

 (xii) A common threshold exemption would apply to both CGST and SGST. Tax payers with
an annual turnover not exceeding Rs.20 lakh (Rs.10 Lakh for special category States) would
be exempt from GST. For small taxpayers with an aggregate turnover in a financial year upto
50 lakhs, a composition scheme is available. Under the scheme a taxpayer shall pay tax as a
percentage of his turnover in a State during the year without benefit of Input Tax Credit. This
scheme will be optional.

 (xiii) The list of exempted goods and services would be kept to a minimum and it would be
harmonized for the Centre and the States as well as across States as far as possible.
 (xiv) Exports would be zero-rated supplies. Thus, goods or services that are exported would
not suffer input taxes or taxes on finished products.

 (xv) Credit of CGST paid on inputs may be used only for paying CGST on the output and the
credit of SGST paid on inputs may be used only for paying SGST. Input Tax Credit (ITC) of
CGST cannot be used for payment of SGST and vice versa. In other words, the two streams
of Input Tax Credit (ITC) cannot be cross-utilised, except in specified circumstances of inter-
state supplies for payment of IGST. The credit would be permitted to be utilised in the
following manner:-

o a) ITC of CGST allowed for payment of CGST & IGST in that order;

o b) ITC of SGST allowed for payment of SGST & IGST in that order;

o c) ITC of IGST allowed for payment of IGST, CGST & SGST in that order.

 (xvi) Accounts would be settled periodically between the Centre and the States to ensure that
the credit of SGST used for payment of IGST is transferred by the Exporting State to the
Centre. Similarly, IGST used for payment of SGST would be transferred by the Centre to the
Importing State. Further, the SGST portion of IGST collected on B2C supplies would also be
transferred by the Centre to the destination State. The transfer of funds would be carried out
on the basis of information contained in the returns filed by the taxpayers.

 (xvii) The laws, regulations and procedures for levy and collection of CGST and SGST
would be harmonized to the extent possible.

The whole GST system will be backed by a robust IT system. In this regard, Goods and
Services Tax Network (GSTN) has been set up by the Government. It will provide front end
services and will also develop back end IT modules for States who opted for the same.
Vision
To establish highest standards of co-operative federalism in the functioning of GST Council,
which is the first constitutional federal body vested with powers to take all major decision
relating to GST.
Mission

Evolving by a process of wider consultation, a Goods and Services Tax structure, which is
information technology driven and user friendly.

S. No. Name Designation Contact No.

1 Shri Ajay Bhushan Revenue 23092653

Pandey Secretary & Ex-
Officio
Secretary to the
GST Council

2 Dr. Rajeev Ranjan Special 21400540, 23762656

Secretary

3 Shri Shashank Commissioner/J 21400543, 23762656

Priya oint Secretary

4 Shri Dheeraj Commissioner/J 21400539

Rastogi oint Secretary

5 Shri Rajesh Kumar Additional 23762656

Agarwal Commissioner/D
irector

6 Shri Gauri Shankar Joint 21400542, 23762656

S. No. Name Designation Contact No.

Sinha Commissioner/D
y. Secretary

7 Shri Jagmohan Joint 21400541

Commissioner/D
y. Secretary

8 Shri Rakesh Deputy 23762656

Agarwal Commissioner

9 Shri Arjun Kumar Deputy 23762656

Meena Commissioner

10 Shri Rahul Raja Assistant 23762656

Commissioner/U
nder Secretary

11 Shri Mahesh Assistant 23762656

Singarapu Commissioner/U
nder Secretary

12 Shri Debasish Dutta Assistant 23762656

Commissioner

13 Shri Sandeep Superintendent 23762656

Bhutani

14 Shri Mukesh Gaur Superintendent 23762656

15 Shri Rajeev Mirchia Superintendent 23762656

S. No. Name Designation Contact No.

16 Shri Umed Singh Superintendent 23762656

Rawat

17 Shri Vipul Sharma Superintendent 23762656

18 Shri Amit Soni Superintendent 23762656

19 Shri Anis Alam Superintendent 23762656

20 Shri Dipendra Superintendent 23762656

Kumar Singh

21 Shri Sunil Kumar Superintendent 23762656

22 Er. Sarib Sahran Superintendent 23762656