All Courses
Get the App Signup / Login
Sign in Open App
UPSC Exam  >  UPSC Notes  >  Indian Polity for UPSC CSE  >  Laxmikant Summary: Goods and Services Tax Council

Laxmikant Summary: Goods and Services Tax Council | Indian Polity for UPSC CSE PDF Download

Establishment

Goods And Services Tax CouncilGoods And Services Tax Council

In 2016, the Joint Amendment Act laid the groundwork for a new tax system called the Goods and Services Tax (GST). For this tax to work smoothly, the central government and state governments need to cooperate and coordinate. To make this happen, the amendment created a special body called the Goods and Services Tax Council (GST Council).

Article 279-A of Indian ConstitutionArticle 279-A of Indian Constitution

To formalize the council's existence, a new Article 279-A was added to the Constitution, giving the President the power to establish the GST Council through an official order. The President issued this order in 2016 to bring the council into action.

The GST Council's main office is in New Delhi, and the Union Revenue Secretary automatically serves as the Secretary to the Council. This setup ensures effective communication and collaboration between the central and state governments in managing the GST.

Question for Laxmikant Summary: Goods and Services Tax Council
Try yourself:
What is the purpose of the Goods and Services Tax Council (GST Council)?
View Solution

Vision and Mission

While carrying out its functions, the Council aims to create a harmonized structure for GST and develop a unified national market for goods and services. The Council also has the authority to determine the procedure for performing its functions.

The vision of the Council is to establish the highest standards of cooperative federation in its functioning. It's the first constitutional federal body with the power to make significant decisions related to GST.

The mission of the Council is to develop a GST structure through broad consultation, focusing on information technology-driven and user-friendly approaches. They aim to achieve this by involving a wide range of opinions and perspectives.

Question for Laxmikant Summary: Goods and Services Tax Council
Try yourself:
What is one of the key responsibilities of the Goods and Services Tax (GST) Council?
View Solution

Composition

The Council is a group that includes members from both the central government and the states. Here are the key members:

Composition of Goods & Service Tax CouncilComposition of Goods & Service Tax Council

  1. The person in charge of the country's finances, called the Union Finance Minister, is the Chairperson. 
  2. The Union Minister of State responsible for Revenue or Finance is also a member. 
  3. Each state government nominates a Minister in charge of Finance or Taxation or any other Minister to be part of the Council.

The state members of the Council need to choose one among themselves to be the Vice-Chairperson, and they can decide how long this person will serve in that role. Additionally, the Union Cabinet decided to include the head of the Central Board of Indirect Taxes and Customs (CBIC) as a permanent guest (non-voting) in all Council proceedings.

Working

The decisions of the Council are made during its meetings. For a meeting to proceed, at least half of the total members need to be present—this is called the quorum. To make a decision, it requires a majority of not less than three-fourths of the weighted votes from the members present and voting.

Laxmikant Summary: Goods and Services Tax Council | Indian Polity for UPSC CSE

Here's how decisions are made:

  1. The central government's vote has a weightage of one-third of the total votes in the meeting.
  2. The combined votes of all state governments have a weightage of two-thirds of the total votes in the meeting.
  3. Importantly, any act or proceedings of the Council won't be considered invalid for the following reasons:
    • Any vacancy or problem in the Council's formation.
    • Any issue in appointing a person as a Council member.
    • Any procedural mistake by the Council that doesn't affect the merits of the case.

Question for Laxmikant Summary: Goods and Services Tax Council
Try yourself:
What is one of the key responsibilities of the Goods and Services Tax (GST) Council?
View Solution

Functions

The Council is responsible for providing recommendations to both the central government and the states on various matters related to the Goods and Services Tax (GST). Here are the key areas:

Advantages of GSTAdvantages of GST

  1. Determine which taxes, cesses, and surcharges currently imposed by the central government, states, and local bodies should be combined into GST.
  2. Decide which goods and services should be included or excluded from GST.
  3. Formulate Model GST Laws, principles of levy, and the division of GST on supplies during inter-state trade or commerce. Also, establish principles for determining the place of supply.
  4. Set a threshold limit of turnover, below which goods and services may be exempted from GST.
  5. Establish GST rates, including floor rates with bands.
  6. Determine any special rate or rates for a specific period to generate extra resources during natural calamities or disasters.
  7. Create special provisions for specific states like Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand.
  8. Address any other matters related to GST, as decided by the Council.

Other Functions

In addition to its main responsibilities, the Council has some other important functions:

Summary of GSTSummary of GST

  1. The Council recommends the date when the Goods and Services Tax (GST) should be applied to items like petroleum crude, high-speed diesel, motor spirit (petrol), natural gas, and aviation turbine fuel.
  2. If there is a disagreement about the Council's recommendations or how they are put into action, the Council sets up a way to resolve the disagreement:
    • Between the central government and one or more states.
    • Between the central government and any state or states on one side and one or more other states on the other side.
    • Between two or more states.
  3. The Council also recommends compensation to the states for any loss of revenue due to the introduction of GST for a period of five years. Based on this recommendation, the Parliament decides the compensation. In 2017, the Parliament enacted the law accordingly.

Question for Laxmikant Summary: Goods and Services Tax Council
Try yourself:
What is one of the key responsibilities of the Goods and Services Tax (GST) Council?
View Solution



The document Laxmikant Summary: Goods and Services Tax Council | Indian Polity for UPSC CSE is a part of the UPSC Course Indian Polity for UPSC CSE.
All you need of UPSC at this link: UPSC
145 videos|603 docs|203 tests
Join Course for Free

Top Courses for UPSC

FAQs on Laxmikant Summary: Goods and Services Tax Council - Indian Polity for UPSC CSE

1. What is the Goods and Services Tax Council?
Ans. The Goods and Services Tax Council is an establishment responsible for the administration and implementation of the Goods and Services Tax (GST) in India.
2. What is the vision and mission of the Goods and Services Tax Council?
Ans. The vision of the Goods and Services Tax Council is to create a transparent and simple tax environment for businesses and taxpayers in India. Its mission is to ensure the smooth implementation of the GST by formulating policies, rules, and regulations related to the tax.
3. How is the Goods and Services Tax Council composed?
Ans. The Goods and Services Tax Council is composed of the Union Finance Minister (as the Chairman), the Union Minister of State in charge of Revenue or Finance, and the Finance Ministers of all the states and union territories in India.
4. What is the working process of the Goods and Services Tax Council?
Ans. The Goods and Services Tax Council holds regular meetings to discuss and decide on various issues related to the GST. These meetings involve deliberations on policy matters, tax rates, exemptions, and any other relevant topics. The decisions taken by the Council are binding on both the central and state governments.
5. What are the functions and other functions of the Goods and Services Tax Council?
Ans. The primary function of the Goods and Services Tax Council is to recommend and make decisions on various aspects of the GST, such as tax rates, exemptions, and thresholds. It also addresses any implementation challenges and provides clarifications on the GST to businesses and taxpayers. Additionally, the Council acts as a forum for dispute resolution between the central and state governments on GST-related matters.
Related Exams
About this Document
4.88/5 Rating
Dec 22, 2024 Last updated
Document Description: Laxmikant Summary: Goods and Services Tax Council for UPSC 2024 is part of Indian Polity for UPSC CSE preparation. The notes and questions for Laxmikant Summary: Goods and Services Tax Council have been prepared according to the UPSC exam syllabus. Information about Laxmikant Summary: Goods and Services Tax Council covers topics like Establishment, Goods And Services Tax Council, Vision and Mission, Composition, Working, Functions, Other Functions and Laxmikant Summary: Goods and Services Tax Council Example, for UPSC 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Laxmikant Summary: Goods and Services Tax Council.
Introduction of Laxmikant Summary: Goods and Services Tax Council in English is available as part of our Indian Polity for UPSC CSE for UPSC & Laxmikant Summary: Goods and Services Tax Council in Hindi for Indian Polity for UPSC CSE course. Download more important topics related with notes, lectures and mock test series for UPSC Exam by signing up for free. UPSC: Laxmikant Summary: Goods and Services Tax Council | Indian Polity for UPSC CSE
Description
Full syllabus notes, lecture & questions for Laxmikant Summary: Goods and Services Tax Council | Indian Polity for UPSC CSE - UPSC | Plus excerises question with solution to help you revise complete syllabus for Indian Polity for UPSC CSE | Best notes, free PDF download
Information about Laxmikant Summary: Goods and Services Tax Council
In this doc you can find the meaning of Laxmikant Summary: Goods and Services Tax Council defined & explained in the simplest way possible. Besides explaining types of Laxmikant Summary: Goods and Services Tax Council theory, EduRev gives you an ample number of questions to practice Laxmikant Summary: Goods and Services Tax Council tests, examples and also practice UPSC tests
145 videos|603 docs|203 tests
Join Course for Free
Download as PDF
Explore Courses for UPSC exam

Top Courses for UPSC

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Related Searches

study material

,

pdf

,

Important questions

,

Summary

,

Viva Questions

,

Laxmikant Summary: Goods and Services Tax Council | Indian Polity for UPSC CSE

,

practice quizzes

,

ppt

,

Free

,

shortcuts and tricks

,

Extra Questions

,

Exam

,

MCQs

,

Sample Paper

,

Objective type Questions

,

past year papers

,

Laxmikant Summary: Goods and Services Tax Council | Indian Polity for UPSC CSE

,

Semester Notes

,

mock tests for examination

,

Laxmikant Summary: Goods and Services Tax Council | Indian Polity for UPSC CSE

,

video lectures

,

Previous Year Questions with Solutions

;
Additional Information about Laxmikant Summary: Goods and Services Tax Council for UPSC Preparation

Laxmikant Summary: Goods and Services Tax Council Free PDF Download

The Laxmikant Summary: Goods and Services Tax Council is an invaluable resource that delves deep into the core of the UPSC exam. These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective. With the help of these notes, you can grasp complex subjects quickly, revise important points easily, and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner, allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material, or toppers' notes, this PDF has got you covered. Download the Laxmikant Summary: Goods and Services Tax Council now and kickstart your journey towards success in the UPSC exam.

Importance of Laxmikant Summary: Goods and Services Tax Council

The importance of Laxmikant Summary: Goods and Services Tax Council cannot be overstated, especially for UPSC aspirants. This document holds the key to success in the UPSC exam. It offers a detailed understanding of the concept, providing invaluable insights into the topic. By knowing the concepts well in advance, students can plan their preparation effectively. Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.

Laxmikant Summary: Goods and Services Tax Council Notes

Laxmikant Summary: Goods and Services Tax Council Notes offer in-depth insights into the specific topic to help you master it with ease. This comprehensive document covers all aspects related to Laxmikant Summary: Goods and Services Tax Council. It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation. Practice papers and question papers enable you to assess your progress effectively. Additionally, the paper analysis provides valuable tips for tackling the exam strategically. Access to Toppers' notes gives you an edge in understanding complex concepts. Whether you're a beginner or aiming for advanced proficiency, Laxmikant Summary: Goods and Services Tax Council Notes on EduRev are your ultimate resource for success.

Laxmikant Summary: Goods and Services Tax Council UPSC Questions

The "Laxmikant Summary: Goods and Services Tax Council UPSC Questions" guide is a valuable resource for all aspiring students preparing for the UPSC exam. It focuses on providing a wide range of practice questions to help students gauge their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation. The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level. Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.

Study Laxmikant Summary: Goods and Services Tax Council on the App

Students of UPSC can study Laxmikant Summary: Goods and Services Tax Council alongwith tests & analysis from the EduRev app, which will help them while preparing for their exam. Apart from the Laxmikant Summary: Goods and Services Tax Council, students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc. The EduRev App will make your learning easier as you can access it from anywhere you want. The content of Laxmikant Summary: Goods and Services Tax Council is prepared as per the latest UPSC syllabus.
© EduRev
Education Revolution
Signup to see your scores go up
within 7 days!
Takes less than 10 seconds to signup