The process of creating the GST Council was facilitated by the Constitutional (122^nd Amendment) Bill, 2016 (“CAB”) which was introduced in the Parliament. The CAB was passed by the Lok Sabha in May, 2015. The Bill was referred to the Select Committee of Rajya Sabha on 12.05.2015. The Select Committee had submitted its Report on the Bill on 22.07.2015. The Bill with certain amendments was finally passed in the Rajya Sabha and thereafter by Lok Sabha in August, 2016. It was then ratified by required number of states and thereafter the Hon’ble President gave assent on September 08, 2016 and  has since been enacted as Constitution (101^st Amendment) Act, 2016. Following the assent, the Union Cabinet in the meeting held in September, 2016 approved setting-up of GST Council and its Secretariat. Since the GST council has been brought into existence, the Constitutional body, decides and notifies issues related to GST.

MEMBERS OF THE GST COUNCIL

To formulate the GST regulations, the Government appointed the GST Council, as per Article 279A of the amended Constitution, which is a joint forum for the Centre and the States. Headed by the current Union Finance Minister, Nirmala Sitharaman, the GST Council consists of the following members:

1.         The Union Finance Minister (as Chairman);

2.         The Union Minister of State, in-charge of Revenue of finance;

3.         The Minister in-charge of finance or taxation or any other Minister nominated by each State Government as Members;

In the Union Cabinet meeting, which was held in September, 2016, it was also decided to appoint:

1.         The Secretary (Revenue) as the Ex-officio Secretary;

2.         The Chairperson, Central Board of Indirect Taxes and Custom (CBIC, formerly known as CBEC), as a permanent invitee (non-voting) to all proceedings of the Council;

3.         One post of Additional Secretary to the Council in the Secretariat (at the level of Additional Secretary to the Government of India);

4.         Four posts of Commissioner in the GST Secretariat (at the level of Joint Secretary to the Government of India).

FUNCTIONS AND POWERS OF GST COUNCIL

The GST council is the key decision-making body that take all important decisions regarding the GST. The predominant responsibility of the GST Council is to ensure to have one uniform tax rate for goods and services across the nation.

As per Article 279A (4), the Council is empowered to make recommendations to the Union and the States on important issues related to GST, for instance-

(i) The goods and services that may be subjected or exempted from GST;

(ii) Principles that govern Place of Supply.

(iii) Threshold limits.

(iv) GST rates including the floor rates with bands, special rates for raising additional resources during natural calamities/disasters or RNR

(v) Special provisions for certain States, etc.

(vi) Transition Provisions