IN NEWS- Recently, at the 47th meeting of the GOODS AND SERVICES TAX(GST) Council, chaired by Union Finance Minister, officials approved hiking the rates for some goods and services while removing exemptions for several mass consumption items to simplify the rate structure.
WHAT IS GST COUNCIL?
In order to implement GST, Constitutional (122nd Amendment) Bill (CAB for short) was introduced in the Parliament and passed by Rajya Sabha on 03rd August, 2016 and Lok Sabha on 08th August, 2016.
GST COUNCIL
As per Article 279A (1) of the amended Constitution, the GST Council has to be constituted by the President within 60 days of the commencement of Article 279A. The notification for bringing into force Article 279A with effect from 12th September, 2016 was issued on 10th September, 2016.
As per Article 279A of the amended Constitution, the GST Council which will be a joint forum of the Centre and the States, shall consist of the following members: -
- Union Finance Minister - Chairperson
-
- b) The Union Minister of State, in-charge of Revenue of finance - Member
-
- c) The Minister In-charge of finance or taxation or any other Minister nominated by each State Government - Members
WORK OF GST COUNCIL
As per Article 279A (4), the Council will make recommendations to the Union and the States on important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws, principles that govern Place of Supply, threshold limits, GST rates including the floor rates with bands, special rates for raising additional resources during natural calamities/disasters, special provisions for certain States, etc.
The Union Cabinet under the Chairmanship of Prime Minister Shri Narendra Modi approved setting up of GST Council on 12th September, 2016 and also setting up its Secretariat as per the following details:
- (a) Creation of the GST Council as per Article 279A of the amended Constitution;
-
- b) Creation of the GST Council Secretariat, with its office at New Delhi;
-
- (c) Appointment of the Secretary (Revenue) as the Ex-officio Secretary to the GST Council;
-
- (d) Inclusion of the Chairperson, Central Board of Excise and Customs (CBEC), as a permanent invitee (non-voting) to all proceedings of the GST Council.
-
-
Recent Important Fact:
- This is the first meeting since a decision of the Supreme Court in May 2022, Supreme Court stated that the recommendations of the GST Council are not binding.
-
- The court said Article 246A of the Constitution gives both parliament and state legislature“simultaneous" power to legislate on GST and recommendations of the Council “are the product of a collaborative dialogue involving the Union and States”.
-
This was hailed by some states, such as Kerala and Tamil Nadu, who believe states can be more flexible in accepting the recommendations as suited to them.
what will become costlier, or cheaper--
-18 per cent Goods and Services Tax (GST) will be applicable on bank cheque book/loose leaf cheques and 12 per cent on maps, atlas, and globes.
Unbranded but pre-packed curd, lassi, butter milk, food items, grains etc will be brought under the GST net from the exemption list.
GST rates on medical items like ostomy and orthopaedic appliances - splints and other fracture appliances, artificial parts of the body, other appliances which are worn or carried, or implanted in the body, to compensate for a defect or disability, and intraocular lens - has come down to five percent from 12 per cent.
The GST for transport of good and passengers by ropeway is down to five percent from 18 per cent and the renting of truck/goods carriage where cost of fuel is included brought down by six per cent to 12 percent.
The other items for which GST rates has been increased are printing, writing or drawing ink (12 percent to 18 percent), knives with cutting blades, paper knives, pencil sharpeners and blades therefor, spoons, forks, ladles, skimmers, cake-servers
