All you need to know about GST council and its functions

GST council:


It is a key decision making body that will take up all the important decisions regarding the GST. The GST council dictates tax exemption, tax rate, tax laws, due date of forms, tax deadlines and special rates and provisions for some states. GST council ensures to have one uniform tax rate for goods and services across the nation.

How it has been structured?


GST is governed by the GST council. Article 279(1) state that the GST council has to be constituted by the honorable president within 60 days of the commencement of the article 279(A).

According to this article, GST council is a joint forum for center and states. It consists of the following members.

  • The Union finance minister acts as a chairperson.
  • Being one of the members, the Union Minister of State is the in charge of revenue of finance.
  • The ministers who are in charge of finance or taxation or any other minister nominated by the state government as members.

GST council recommendations:


As per the article 279A (4), the GST council can make the recommendation to both the union and the states on the important things related to GST such as services or goods which are exempted from the GST.

Following things will be governed by the council:

  • Place of supply.
  • GST rates on goods and services.
  • Threshold limit.
  • Raising of additional resources during a disaster or a natural calamity.
  • Special GST rates for certain states.

Features of GST council:


  • Revenue secretary has been appointed as the Ex-officio secretary to the GST council.
  • Create a post for additional secretary to the GST council.
  • Four posts of commissioner in the GST council secretariat been created. (This is at the level of joint secretary).
  • CBEC (Central Board of Excise and Customs) is included as the chairperson as a permanent invitee (non-voting) to all the proceedings of the GST council.
  • GST council secretariat has officers to do the deputation from both the central and state governments.
  • GST council office is setup in New Delhi.

The cabinet has been providing funds for meeting the expenses which is for both the recurring and non-recurring of the GST council secretariat. This can be completely borne by the central government.

GST council meetings:


The GST council discuss the GST laws that would benefit the dealer across the nation. The previous latest GST council meet was to implement the GST provisions via e-way bills which require goods more than Rs.50000 in value that to be registered online before they can be moved. Time duration has been extended to file GSTR-1.

The council also setup the anti-profiteering screening committees which will make the national anti-profiteering authority as stronger one under the GST law.

Other than laying GST laws, the GST Council have taken decisions as such:

  • The threshold limit for exemption of GST would be set at Rs.20 lakh per year for all States (except for special category states)
  • The threshold for special States is set at Rs 10 lakh per year
  • For composition scheme is set at Rs. 75 lakh for all States (except for the North East States and Himachal Pradesh – Set at Rs 50 lakh per year)
  • Ice cream, tobacco, pan masala, and other edible ice manufacturers shall not be eligible for composition levy (except for restaurant services)

GST Council also looks into drafting GST rules on registration, payment, valuation, input tax credit, composition, return, refund and invoice, and transitional provisions, among other things.

Functions of GST council:


The GST council makes the recommendation to both Union and state on the following matters:

  • Model GST laws, apportionment of IGST, principles of levy and principles that govern the place of supply.
  • Special rates will be raised for additional resources during the natural calamities.
  • Good or services which may be subjected to or exempted from GST.
  • Taxes, surcharges, cesses which have been levied by the state, centre and local bodies may be subsumed in the GST.
  • Special provisions with respect to Manipur, Jammu and Kashmir, ArunachalPradesh, Mizoram, Meghalaya, Tripura, Nagaland, Mizoram, Sikkim and Uttarakhand.

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