Chairman of the GST Council
The Finance Minister is the chairman of the GST Council. Presently, the Union Finance Minister Nirmala Sitharaman is the chairperson of the GST Council. The Goods and Services Tax Council or GST Council was instituted on 12th September 2016 to implement the GST. It was set up to decide issues relating to GST.
GST council incorporates the following members - the Union Finance Minister, the Union Minister of State, and the Minister-in-charge of taxation or finance or any other Minister nominated by each State Government.
- The GST Council has 2 members from the Center and 31 members representing the states and union territories.
- The 101st Amendment Act of 2016 paved the way for the introduction of the Goods and Services Tax in India, and accordingly, the President issued an order in 2016 and constituted the Council.
- As per Article 279, the GST Council is "to make recommendations to the Center and the States on important issues relating to GST, such as whether goods and services may be exempted from or subject to GST, model GST laws".
- The GST Council also decides on different rate slabs of GST.
GST Council of India
The GST Council, which is made up of the central government and all the states' finance ministers, is in charge of determining the tax rates, rules, and regulations. The $2.4 trillion economy of the country is expected to undergo change as a result of the GST, which is intended to replace a number of indirect taxes with a single federated tax. Positive effects of the GST include a 20% reduction in interstate travel time as a result of the elimination of interstate checkpoints.
The GST Council is in charge of handling matters related to GST, including those involving the goods and services that may be subject to or exempt from GST, rules governing the place of supply, model GST laws, GST rates, including floor rates with bands, threshold limits, special rates for raising additional funds during natural calamities/disasters, special provisions for certain States, etc.
Advantages of Goods and Services Tax (GST)
The following are some advantages of GST:
- It assists in developing a unified common national market for India.
- It uplifts the “Make in India” campaign and foreign investment.
- Reduce the taxes as Input Tax Credit will be available across goods and services at every stage of supply.
- It will increase the export and manufacturing activity.
- It generates more employment and thus increases GDP.