In exercise of the powers conferred by article 279A of the Constitution, the President of India has constituted the Goods and Services Tax Council.
This GST Council will decide on the tax rate, exempted goods and the threshold under the new taxation regime.
The council will be chaired by Union Finance Minister and have Minister in charge of Finance or Taxation or any other Minister nominated by each State Government as its member.
Also Minister of State in charge of Revenue or Finance at the Centre would be a member.
The first meeting of the GST Council will be held on September 22-23.
The government is planning to introduce GST legislations — Central GST (CGST) and Integrated GST (IGST) — in Winter Session of Parliament in November.
The legislation would mention the tax rate, exempted goods and also the threshold.
Background:
The Constitution (122nd Amendment) Bill 2016, for introduction of the goods and services tax in the country was accorded assent by the President on September 8 and the same has been notified as the Constitution (One Hundred and First Amendment) Act, 2016.
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 September 12, 2016 was issued on September 10, 2016.
