All questions of Goods and Services Tax Council for BPSC (Bihar) Exam

Article 279A (1) of the Indian Constitution pertains to the establishment of the Goods and Services Tax (GST) Council. The GST Council is responsible for making recommendations on various aspects of the GST, such as tax rates, exemption thresholds, and administrative issues.

The correct answer is option 'C', which states that the President is required to constitute the GST Council within 60 days of the commencement of Article 279A. This means that the President must form the GST Council within two months of the provision coming into effect.

Here is a detailed explanation of the answer:

- Constitution of the GST Council: Article 279A (1) of the Constitution states that the President shall constitute a GST Council within 60 days of the commencement of Article 279A.
- Commencement of Article 279A: The commencement of Article 279A refers to the date on which this specific provision of the Constitution comes into effect. In the case of the GST Council, it came into effect on 12th September 2016.
- President's role: The President of India is responsible for constituting the GST Council. The President has the authority to appoint the members of the Council, including the Chairperson, who is the Union Finance Minister.
- Timeframe: As per the Constitution, the President has a maximum of 60 days from the commencement of Article 279A to form the GST Council. This means that the President must complete the process of constituting the Council within this timeframe.
- Importance of timely constitution: The timely constitution of the GST Council is crucial for the effective implementation of the GST regime. The Council plays a vital role in decision-making regarding the GST, including the determination of tax rates and the resolution of any disputes that may arise between the Central and State governments.
- Composition of the GST Council: The GST Council consists of members representing both the Central and State governments. The Union Finance Minister is the Chairperson of the Council, while the Union Minister of State for Finance and Ministers in charge of Finance or Taxation from each State are its members.
- Decision-making process: The GST Council operates on the principle of consensus, with each member having one vote. Important decisions, such as those related to tax rates and exemptions, require a three-fourths majority for approval.
- Recommendations and implementation: The GST Council makes recommendations on various aspects of the GST, and these recommendations are then implemented by the respective governments through legislation and administrative measures.

In conclusion, as per Article 279A (1) of the Constitution, the GST Council must be constituted by the President within 60 days of the commencement of Article 279A. The timely constitution of the GST Council is crucial for the effective implementation of the GST regime in India.

The GST Council shall make recommendations on the following matters:

a) The taxes, cesses, and surcharges:
The GST Council is responsible for making recommendations on the taxes, cesses, and surcharges that are levied by the Union, the States, and the local bodies and that may be subsumed in the goods and services tax (GST). This includes identifying the existing indirect taxes that can be replaced by GST to create a unified tax structure.

b) The goods and services:
The Council also makes recommendations on the goods and services that may be subjected to or exempted from the GST. This involves determining the applicable tax rates for different goods and services, as well as identifying specific goods and services that should be exempt from GST.

c) The model GST Laws and principles:
The GST Council plays a crucial role in formulating and recommending the model GST Laws. These laws include the principles of levy, apportionment, and collection of the GST on supplies made during inter-State trade or commerce. The Council also determines the principles that govern the place of supply for goods and services, which is essential for determining the appropriate tax jurisdiction.

d) All of the above:
Therefore, the correct answer is option 'D' - All of the above. The GST Council makes recommendations on a wide range of matters related to taxes, goods, services, and the overall framework of the GST system. Its recommendations are crucial in shaping the GST legislation and ensuring a smooth and efficient implementation of the tax regime across the country.

It is important to note that the GST Council is composed of the Union Finance Minister, the Minister of State in charge of revenue or finance, and the finance ministers of all the states and Union territories with legislatures. This composition ensures a collaborative decision-making process and allows for the representation of different stakeholders in the GST system.

The GST Council is a constitutional body responsible for:

The correct answer is option 'A' - Making recommendations to the Union and State Government on issues related to Goods and Services Tax. Let's delve into the details of why this option is correct.

Explanation:

The Goods and Services Tax (GST) Council was formed as per the provisions of the Constitution (One Hundred and First Amendment) Act, 2016. It is a constitutional body responsible for making recommendations to the Union and State Governments on various issues related to the GST.

Role and Responsibilities of the GST Council:

1. Making recommendations: The primary role of the GST Council is to make recommendations to both the Union and State Governments on issues related to the GST. These recommendations can include matters such as tax rates, exemptions, thresholds, and other policy-related decisions.

2. Deciding tax rates: The GST Council decides on the tax rates for different goods and services. It determines the rates under different categories such as the standard rate, the rate for essential goods, and the rate for luxury goods. These decisions are taken based on the recommendations made by the Council.

3. Harmonizing tax structure: The Council works towards harmonizing the tax structure across the country. It aims to achieve uniformity in tax rates and procedures for the supply of goods and services. This helps in creating a common market by eliminating barriers to trade and ensuring a seamless flow of goods and services.

4. Addressing issues and concerns: The GST Council addresses issues and concerns raised by the Union and State Governments regarding the implementation of the GST. It provides a platform for discussion and resolution of these issues, ensuring smooth functioning of the tax regime.

5. Decision-making: While the GST Council primarily makes recommendations, it also has the power to make certain decisions on the implementation of the GST. However, major decisions such as changes in tax rates and thresholds require the approval of both the Union and State Governments.

Conclusion:

The GST Council plays a crucial role in the implementation and functioning of the Goods and Services Tax in India. It acts as a platform for discussion, decision-making, and making recommendations to the Union and State Governments. Its main objective is to ensure a smooth transition to the GST regime and address any issues or concerns that may arise along the way.

The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2016 was passed by the Rajya Sabha on 3rd August 2016 and by the Lok Sabha on 8th August 2016. This bill sought to introduce the Goods and Services Tax (GST) in the country, which is a comprehensive indirect tax on the supply of goods and services.



The passage of the GST Bill required the approval of both the Rajya Sabha (upper house of Parliament) and the Lok Sabha (lower house of Parliament). The bill was first introduced in the Lok Sabha, and after discussion and voting, it was passed by the Lok Sabha on 3rd August 2016. Later, it was sent to the Rajya Sabha for further consideration.

The Rajya Sabha, after thorough debate and discussion, passed the GST Bill on 8th August 2016. With the approval of both houses of Parliament, the bill was then sent to the President for his assent.

The President's assent is a necessary step for a bill to become an act. After receiving the President's assent, the Constitution (One Hundred and Twenty-Second Amendment) Act, 2016 was formed, and it came into effect from 8th September 2016.

The passing of the GST Bill was a significant milestone in the economic history of India. The introduction of GST aimed to replace multiple indirect taxes levied by the central and state governments, providing a unified tax structure across the country. This new tax system aimed to simplify tax compliance, reduce tax evasion, and promote ease of doing business.

By passing the bill, both the Rajya Sabha and the Lok Sabha demonstrated their commitment to economic reforms and their understanding of the importance of a unified tax system for the country's growth and development.

In conclusion, the Constitution (One Hundred and Twenty-Second Amendment) Bill, 2016, which introduced the Goods and Services Tax in India, was passed by the Rajya Sabha on 3rd August 2016 and by the Lok Sabha on 8th August 2016.