(Last Updated On: August 6, 2016)

Goods and Services Tax Council

( As per Proposed ARTICLE 279A of Constitution)

Time for Constitution of Goods and Services Tax Council

The President shall, within sixty days from the date of commencement of the Constitution (One Hundred and First Amendment) Act, 2016, by order, constitute a Council to be called the Goods and Services Tax Council.

Members of Goods and Services Tax Council

The Goods and Services Tax Council shall consist of the following members, namely:—

(a) the Union Finance Minister…………………… Chairperson;

(b) the Union Minister of State in charge of Revenue or Finance …………….. Member;

(c) the Minister in charge of Finance or Taxation or any other Minister nominated by each State Government……………….. Members.

The Members of the Goods and Services Tax Council referred to in sub-clause (c) shall, as soon as may be, choose one amongst themselves to be the Vice-Chairperson of the Council for such period as they may decide.

Quorum of Goods and Services Tax Council

One half of the total number of Members of the Goods and Services Tax Council shall constitute the quorum at its meetings.

Decision making power of Goods and Services Tax Council

Every decision of the Goods and Services Tax Council shall be taken at a meeting, by a majority of not less than three-fourths of the weighted votes of the members present and voting, in accordance with the following principles, namely:—

(a) the vote of the Central Government shall have a weightage of one third of the total votes cast, and (b) the votes of all the State Governments taken together shall have a weightage of two-thirds of the total votes cast, in that meeting.

Purpose of Goods and Services Tax Council

The Goods and Services Tax Council shall make recommendations to the Union and the States on—

(a) the taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be subsumed in the goods and services tax;

(b) the goods and services that may be subjected to, or exempted from the goods and services tax; (c) model Goods and Services Tax Laws, principles of levy, apportionment of Goods and Services Tax levied on supplies in the course of Inter-State trade or commerce under article 269A and the principles that govern the place of supply;

(d) the threshold limit of turnover below which goods and services may be exempted from goods and services tax;

(e) the rates including floor rates with bands of goods and services tax;

(f) any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster;

(g) special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and

(h) any other matter relating to the goods and services tax, as the Council may decide

The Goods and Services Tax Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel.

Goods and Services Tax Council to Establish Dispute Resolution Mechanism

The Goods and Services Tax Council shall establish a mechanism to adjudicate any dispute—

(a) between the Government of India and one or more States; or

(b) between the Government of India and any State or States on one side and one or more other States on the other side; or

Goods and Services Tax Council to consider harmonised structure

The Goods and Services Tax Council shall be guided by the need for a harmonised structure of goods and services tax and for the development of a harmonised national market for goods and services.

Procedure of Goods and Services Tax Council

The Goods and Services Tax Council shall determine the procedure in the performance of its functions.

Proceeding of Goods and Services Tax Council :-

No act or proceedings of the Goods and Services Tax Council shall be invalid merely by reason of—

(a) any vacancy in, or any defect in, the constitution of the Council; or

(b) any defect in the appointment of a person as a member of the Council; or

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