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Customer Care No.


The GST Council - Centre has the Veto


The Constitutional amendment bill has been cleared by both the houses
of parliament and now states have started to ratify the same with
amazing speed so now it is sure that GST will be a reality sooner or later.
It may be introduced on 1st April 2017 as declared by the Government or
may be delayed for 6 months or one year but now GST is a reality.
The GST rates are not fixed and the exemption Limit i.e. the threshold is
also not declared and further the exemption list is not ready coupled with
some of the major procedural decision and the key of all these matters
The Constitutional amendment bill on GST has the provision for creation
of GST council within 60 days from the date of commencement of GST
constitutional amendment bill. This council is considered to be a very
powerful institution ever made in India after independence with respect
to the decision making power on major economic and strategic decisions
with respect to Indirect taxation system of the country and it will
recommend on very vital issues on GST.

Customer Care No. 91-11-45562222

1. The taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be subsumed in the
goods and services tax.
2. The goods and services that may be subjected to, or exempted from the goods and services tax.
3. Model Goods and Services Tax Laws, principles of levy, apportionment of Integrated Goods and Services Tax and the
principles that govern the place of supply.
4. The threshold limit of turnover below which goods and services may be exempted from goods and services tax.
5. The rates including floor rates with bands of goods and services tax.
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.
8. Any other matter relating to the goods and services tax, as the Council may decide.

Customer Care No. 91-11-45562222

Everything that is related to the Goods and Service tax including the rates, the exemption list, the threshold limit will
be in the hands of GST council so it will be a very powerful body. Further the GST council will also recommend the
date on which petroleum products will be brought into the ambit of GST.
Further the GST Council will have to decide about the modalities to resolve disputes arising out of its
recommendation. This provision has strengthened the power of the GST council. The GST council yet to be set up
hence the modalities will be decided later.
The GST council will be a body comprised of central and State representatives and Finance Minister of India shall be
the chairperson of the GST council and Minister of state for finance shall also be the member of the GST council as a
central Government's representative.
The Finance Minister of each state or any other Minister as designated by the state Government shall also be the
member of the GST council representing his state. The designated Minister provision is made in the GST council
constitution due to the fact that in some states the Finance portfolio is headed by CM of the state. The state
representatives will choose the vice chairperson of GST council amongst themselves.
Now it is clear that the GST council will be a very powerful body as far as Indirect tax system of the country is
concerned. Now see how this council will take the decision on the matters

Customer Care No. 91-11-45562222

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Customer Care No. 91-11-45562222