Economy News

 GST COUNCIL

Written by Talent KAS

Related Topic in KAS Prelims Syllabus:

Economy [Paper-II]: GST: Concept and Implications

News

The 38th meeting of the GST Council met under the Chairmanship of the Union Minister for Finance & Corporate Affairs Nirmala Sitharaman.

Decisions of the Council

  • The Council has fixed a uniform tax rate of 28 percent on both state-run and private lottery.
  • It also decided to rationalise the GST rate on woven and non-woven bags to 18 per cent.
  • It also decided to exempt upfront amount payable for long term lease of industrial and financial infrastructure plots by an entity having 20 per cent or more ownership of Central or State Government.
  • It also recommended for the constitution of Grievance Redressal Committees (GRC) at Zonal/State level with both CGST and SGST officers and including representatives of trade and industry and other GST stakeholders (GST practitioners and GSTN etc.).

About GST Council

  • It is a constitutional body for making recommendations to the Union and State Government on issues related to Goods and Service Tax.
  • 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.
  • It was created in September 2016 under Article 279-A of the Constitution of India.
  • GST rates to be levied on different products are decided by the Goods and Services Tax (GST) Council.

Decision Making

  • The Constitution (101st Amendment) Act, 2016 provides that every decision of the GST Council shall be taken at its meeting by a majority of not less than 3/4th of the weighted votes of the Members present and voting.
  • The vote of the Central Government shall have a weightage of 1/3rd of the votes cast and the votes of all the State Governments taken together shall have a weightage of 2/3rd of the total votes cast in that meeting.
  • One half of the total number of members of the GST Council shall constitute the quorum at its meeting.

[Source: All India Radio, gstcouncil.gov.in]

 

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