Constitution of GST Council

 A GST Council has been constituted under Article 279A of the

Constitution on 12-09-2016.
 It is a key decision making body
 It makes recommendation to Union and States relating to GST.
 It consist of:-
1) Chairman – Union Finance Minister
2) Vice Chairman – elected by GST Council amongst its members
3) Members:-
(a) The Union Minister of State, in-charge of Revenue/Finance
(b) The Minister of finance or taxation or any other Minister
nominated by each State Government
 Decision of GST Council (Quorum)
 Every decision requires minimum of 75% majority (Consent) of the
weighted votes cast by the members of the council.
 The vote of the Central Government - 1/3rd of the total votes cast.
 The votes of the members of the State Government - 2/3rd of the
total votes cast.
 Note:-At least 50% of the total number of GST members must be
present at every GST Council meeting so that the meeting can be
called a valid meeting.
 Powers of GST Council
GST Council shall make recommendation on following matters:-
1. the taxes, cesses and surcharges levied by the Union, the States
and the local bodies which may be subsumed in the GST;

2. the goods and services that may be subjected to, or exempted

from the GST;
3. model GST Laws, principles of levy, apportionment of IGST &
Principals of that govern the place of supply; 

4. the threshold limit of turnover below which goods and services

may be exempted from GST; 
 Powers of GST Council
5. the rates including floor rates with bands of GST;

6. any special rate or rates for a specified period, to raise additional

resources during any natural calamity or disaster; 

7. special provision with respect to the States of Arunachal Pradesh,

Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram,
Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and
8. any other matter relating to the GST, as the Council may decide.
 Dispute handling by the GST Council
The GST Council shall establish mechanism with which the following
disputes would be settled –

a) Disputes between the Central Government and the State

Government of a State
b) The disputes between the Central Government and one or more
States on one side and one or more States on the other side
c) Disputes between two or more States
 GST Network (GSTN)

 It is a non-profit, non-government organization.

 It manage the entire IT system of the GST portal, which is the

mother database for everything GST.

 Private Company own 51% share in the GSTN, and the rest is owned
by the government
 Functions of GSTN
1. Facilitates registration

2. Forwarding returns to Central and State authorities

3. Computation and settlement of GST

4. Matching of tax payment with banking network
5. Providing MIS Reports to the Central and State Governments.

6. Providing Analysis of taxpayer’s profile

7. Running the matching engine for matching of input tax credit.
 Structure of GST
GST shall be levied on “Concurrent Dual” Basis where the Centre and
States shall have power to levy, collect and administer GST.
The following taxes levied in GST Regime:-
1. SGST – levied by State on intra-state transactions of supply
2. CGST – levied by Centre on intra-state transactions of supply.
3. IGST – levied by Centre on inter-state transactions of supply.
4. UTGST – levied by Union Territories on transaction of supply within
the territory.
5. State Compensation Cess – levied by Central Government to
compensate the states for any loss of revenue for a certain period
and to a certain extent.