What are the Functions of the GST Council?

By Harshal Vispute|Updated : August 11th, 2022

A constitutional body called the Goods and Services Tax Council (GST Council) is tasked with advising the federal and state governments on matters about the GST. The implementation of a new tax system (the goods and services tax, or GST) in the nation was made possible by the 101st Amendment Act of 2016. The centre and the states must work together and coordinate for this tax to be administered smoothly and effectively. The amendment called for forming a GST Council to aid in this consultation process.

The taxes, cesses, and surcharges imposed by the federal government, the states, and local governments would be combined into the GST. the products and services that are potentially subject to GST or GST-exempt. GST model laws, levy principles, GST allocation rules, and place of supply rules all apply to supplies made during interstate trade or commerce. the minimum turnover amount below which products and services are exempt from GST. These are some of the functions provided by the GST Council.

Functions of the GST Council

The GST Council, a constitutional body, is charged with advising the federal and state governments on subjects pertaining to the GST. According to Article 279A (4), one of the GST Council's functions is to make recommendations to the Union and the States on crucial matters like:

  • The centre, the states, and the local governments' taxes, cesses, and surcharges would be combined into the GST.
  • The products and services are either GST-eligible or GST-exempt.
  • Sample GST laws, levy principles, apportionment of GST levied on purchases made during interstate trade or commerce, and rules governing the location of the supplier.
  • The minimum turnover amount below which goods and services are subject to GST exemption.
  • The prices include GST bands and floor prices.
  • Any particular rate or rates for a predetermined time period to raise more money during a natural disaster or calamity
  • Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand are given special consideration.
  • Any other GST-related topic that the Council deems appropriate.

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FAQs

  • The products and services are either GST-eligible or GST-exempt. Product GST laws, levy principles, apportionment of GST levied on purchases made during interstate trade or commerce, and rules governing the location of the supplier are the functions of the GST council. 

  • The Union Finance Minister first brought up the notion of implementing GST in his Budget Speech for 2006–2007. The government decided to introduce GST on July 1st, 2017.

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