What are the Functions of the GST Council?

By BYJU'S Exam Prep

Updated on: November 9th, 2023

The functions of the GST Council are making recommendations and suggestions to the Union and States on significant issues. These issues include taxes, cesses, and surcharges levied by the federal government, and state and local governments. Also, the products and services that are potentially subject to GST or GST-free. The GST model law, levy principle, GST allocation rules, and place of supply rules apply to supplies made during interstate trade or commerce. However, there is a minimum turnover amount below which products and services are exempted from GST.

Functions of the GST Council

The GST Council, a constitutional body, is charged with advising the federal and state governments on GST-related matters. As per Article 279A(4), one of the functions of the GST Council is to make recommendations to the Center and the States on important matters such as:

  • Taxes, cess, and a surcharge of the Central, State, and Local Governments will be subsumed in GST.
  • Products and services are either GST-qualified or GST-free.
  • A minimum turnover amount below which goods and services are subject to GST exemption.
  • Prices include GST band and floor prices.
  • A particular rate or rates for a predetermined time period to raise more funds during a natural calamity or calamity
  • Special attention is given to Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand.
  • Any other matter relating to GST as the Council may deem fit.

GST Council

A constitutional body called the Goods and Services Tax Council (GST Council) is tasked with advising the federal and state governments on matters of GST. The implementation of a new tax system (Goods and Services Tax, or GST) in the country was made possible by the 101st Amendment Act 2016. The Center and the states should work together and coordinate to administer this tax smoothly and effectively. The amendment called for creating a GST Council to aid in this consultation process.

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