What is the GST council?
GST refers to the Goods and Services Tax, a new taxation policy that was introduced by the government of India in the year 2017. A GST council also came into existence in order to amend, reconcile, and control the tax law in the country. The council substitutes the new tax law with other previous laws such as value-added tax, service tax, excise duty, etc. The council has brought the policy in order to ease the taxation process for the common citizens of the country.
Click here – Top 4 things which make your business effective
Who are the members of the GST council?
The GST council consists of several members that are given as follows-
- The union finance minister is the chairman of the GST council. To get more details of the chairman and the other members of the council click here.
- The minister in charge of taxation is nominated by every state government.
- The union minister of state is in charge of revenue.
- One position of additional secretary is given to the council I’m the secretariat.
- The chairperson of the Central Board of Excise and Custom is the permanent invitee i.e. he cannot vote but attend all the proceedings of the council.
- Four commissioners in the GST council has been appointed at the position of Joint Secretary to the Indian government.
What is the role of the GST council?
The council is responsible for various decision makings. The members can recommend any changes or amendments needed in the law to the states and unions. Some of the recommendations that can be made by the council are given below-
- The council can recommend the states and unions about the charges, taxes, and cesses imposed by the unions, local bodies, and the states, whoever is/are involved in the GST.
- The council can take decisions related to the goods and services that need to be included or discluded from the law.
- The council can change the principles related to the law, the distribution of the percentage of the tax on goods and supplies in interstate commerce.
- The council can make decisions on the limit of turnover considered in GST.
- The council can change the rates of the GST.
- The council can grant any special category state any special provisions.
- The council can take any decision related to the law.
The GST council takes its decisions keeping in mind everything from the big factors like centre-state tax devolution to minute details like banker’s verification letters. To know about the format of banker’s verification letters, visit here.
Goods and Services Tax is brought to the country for the good of the Indian citizens. It makes the taxation process easier and beneficial for the traders.