Why in news
- The Goods and Services Tax (GST) Council scheduled its upcoming meeting to discuss compliance simplification for taxpayers.
What is the GST Council?
- Constitutional body established under Article 279A following the 101st Constitutional Amendment Act, 2016.
- Chaired by the Union Finance Minister, with members comprising the Union Minister of State for Finance and Finance/Tax Ministers from all 28 States and 3 Union Territories with legislatures (Delhi, Puducherry, Jammu & Kashmir).
Decision-Making Mechanism
- Every decision requires a three-fourths majority of weighted votes present and voting.
- The Central Government holds a weightage of one-third of total votes cast, while all State Governments combined hold a weightage of two-thirds.
Why it matters
- Serves as the primary institutional vehicle for cooperative federalism in indirect taxation.
- Recommendations of the GST Council are advisory and non-binding on Parliaments and State Assemblies as held in the Mohit Minerals judgment.
Key terms
Article 279A
Constitutional provision empowering the President to constitute the GST Council.
Cooperative Federalism
A model of governance where Union and State executive authorities collaboratively formulate fiscal policy.
Prelims facts
- GST Council is constituted under Article 279A by the President.
- Union Union Territory legislatures participating in the Council include Delhi, Puducherry, and Jammu & Kashmir.
Mains discussion
- Analyze the GST Council as a mechanism of fiscal federalism in light of judicial rulings.
Source: Hindu Business Line
Same topic · past papers
UPSC has asked this before
These previous-year questions sit on the same topic. Open one to practise the earlier ask.
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2015 · Q2 · GS II · 12 marks
The concept of cooperative federalism has been increasingly emphasised in recent years. Highlight the drawbacks in the existing structure and extent to which cooperative federalism would answer the shortcomings. -
2019 · Q1 · GS III · 10 marks
Enumerate the indirect taxes which have been subsumed in the goods and services tax (GST) in India. Also, comment on the revenue implications of the GST introduced in India since July 2017. -
2017 · Q81 · General Studies · 2 marks
What is/are the most likely advantages of implementing 'Goods and Services Tax (GST)'? 1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India. 2. It will drastically reduce the 'Current Account Deficit' of India and will enable it to increase its foreign exchange reserves. 3. It will enormously increase the growth and size of economy of India and will enable it to overtake China in the near future. Select the correct answer using the code given below: -
2020 · Q12 · GS III · 15 marks
Explain the rationale behind the Goods and Services Tax (Compensation to States) Act of 2017. How has COVID-19 impacted the GST compensation fund and created new federal tensions? -
2018 · Q97 · General Studies · 2 marks
Consider the following items: 1. Cereals grains hulled 2. Chicken eggs cooked 3. Fish processed and canned 4. Newspapers containing advertising material Which of the above items is/are exempted under GST (Goods and Services Tax)?