by The Goods and Services Tax (GST) Council is a constitutional body that was established under Article 279A of the Constitution of India. The Council is responsible for overseeing the implementation of GST and ensuring that it is administered in a smooth and efficient manner. The Council is chaired by the Union Finance Minister and includes the finance ministers of all states and union territories with a legislature. Let’s take a closer look at the role and functions of the GST Council:
Making Recommendations on GST Rates and Thresholds
One of the primary functions of the GST Council is to make recommendations on the rates of GST for goods and services, as well as the threshold for exemption. The Council periodically reviews the rates and thresholds and makes recommendations to ensure that they are in line with the prevailing economic conditions.
Addressing Issues Related to GST Implementation
The GST Council is responsible for addressing any issues related to the implementation of GST. This includes identifying areas where there may be difficulties in implementing GST and taking appropriate steps to resolve them. The Council also provides guidance to taxpayers on the procedures for GST compliance.
Deciding on GST Administration Procedures
The GST Council decides on the administrative procedures for GST. This includes the procedures for registration, filing of returns, and payment of tax. The Council also decides on the format and frequency of returns to be filed by taxpayers.
Making Recommendations on GST Law Amendments
The GST Council makes recommendations on amendments to the GST laws. This includes proposing changes to the GST Act, the GST Rules, and the GST Rates Notifications. The Council also ensures that the GST laws are in line with the broader tax policies of the government.
Addressing Issues Related to GST Revenue
The GST Council is responsible for addressing any issues related to GST revenue. This includes reviewing the revenue collections under GST and taking appropriate steps to improve collections. The Council also decides on the distribution of GST revenue between the central government and the state governments.
Addressing Issues Related to Input Tax Credit
The GST Council addresses any issues related to input tax credit. This includes reviewing the procedures for claiming input tax credit and taking appropriate steps to simplify the process. The Council also decides on the rules for claiming input tax credit and the types of input taxes that can be claimed.
Decision Making on GST Disputes
The GST Council is responsible for decision making on GST disputes. In case of any disputes between the central and state governments or between the states, the Council acts as a mediator and resolves the disputes.
Reviewing the GST Law
The GST Council reviews the GST laws periodically to ensure that they are in line with the changing economic and business environment. The Council also reviews the GST laws to identify any gaps or inconsistencies that may need to be addressed.
Ensuring Uniformity in GST Implementation
The GST Council ensures uniformity in the implementation of GST across all states and union territories. The Council takes steps to ensure that the rules and procedures for GST compliance are consistent across the country.
Addressing Issues Related to GST Exemptions
The GST Council is responsible for addressing any issues related to GST exemptions. This includes reviewing the items that are exempt from GST and taking appropriate steps to ensure that the exemptions are in line with the broader tax policies of the government.
Conducting Research on GST Implementation
The GST Council conducts research on GST implementation to identify any areas where improvements can be made. The Council also conducts research to identify best practices in other countries that can be adopted in India.
Facilitating Communication between the Central and State Governments
The GST Council facilitates communication between the central and state governments on issues related to GST implementation. The Council acts as a platform for discussing and resolving any issues related to GST implementation.
