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An introduction to the GST council

What is the GST council?

GST Council is a joint forum of the Centre and the states set up by the President as per Article 279A (1) of the Constitution of India. The council has powers to formulate policies, review decisions and approve the recommendations made by it. The GST Council is chaired by the Union Finance Minister and consists of Chief Ministers from all states.

The council meets to discuss matters relating to the implementation of GST including a review of business tax data and revenue collection reports. The council has been mandated to take decisions on all matters relating to the implementation of GST and its administration, including those related to levy, collection and refund of tax, as well as other matters related to GST such as giving input on the emsigner for mca.

Mandate and objectives of the GST council

Objective 1: Taxes, cesses or surcharges

The Council would be the primary forum to identify new revenue sources and to consider the implications of these proposals on tax administration. The Council would also monitor existing taxes, cesses and surcharges to ensure that they are used appropriately.

Objective 2: Model GST Laws

The GST Council is expected to make recommendations on the model GST laws that will form the basis for implementing the new tax regime. This includes a detailed description of all aspects of the proposed law, including its structure, provisions, exemptions and allowances. It will also provide an overview of key issues such as the classification of goods and services under different rates, rate structures and exemptions.

Objective 3: Threshold limit of turnover

The GST Council is expected to make recommendations on the threshold limit of turnover at which a manufacturer, trader or supplier is required to register and pay tax. This will include a detailed description of all aspects of the proposed law, including its structure, provisions, exemptions and allowances. It will also provide an overview of key issues such as the classification of goods and services under different rates, rate structures and exemptions.

Objective 4: Change in rules for claiming the input tax credit

The GST Council is expected to make recommendations on changes in rules for claiming input tax credit (ITC) for taxpayers who are new to the system or for those who have been operating without paying tax since April 1, 2017. This will include a detailed description of all aspects of the proposed law, including its structure, provisions, exemptions and allowances. It will also provide an overview of key issues such as the classification of goods and services under different rates, rate structures and exemptions.

Constituents of the GST council

The Council is the highest body to decide on matters related to the implementation of the GST. The GST council members include the Union Finance Minister (Chairperson), and the Union Minister of State (Finance) from the Centre, additionally, each state can nominate a minister in charge as a member.

The Council also has a sub-committee consisting of members from states and union territories to discuss issues regarding exemption/exemption limit, threshold limit etc.

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