Q. With reference to Goods and Services Tax (GST) Council, consider the following statements:
1. The GST council is periodically constituted by the President of India as and when the issue arises related to GST.
2. The Union Finance Minister is the chairperson of the Council.
3. The decisions of the council are always based on consensus.
4. The recommendations given by the council are binding upon the state and centre.
How many of the above given statements are correct?
Exp) Option a is the correct answer
Goods & Services Tax (GST) Council is a constitutional body for making recommendations to the Union and State Government on issues related to Goods and Service Tax.
Statement 1 is incorrect: The Goods & Services Tax (GST) Council was established by the President as per Article 279A (1) of the Constitution. GST council is a permanent body and not constituted periodically like the Finance commission.
Statement 2 is correct: The Union Finance Minister is the chairperson of this council. Members of this council include the Union Minister of State, in-charge of Revenue of finance and the Minister of finance for state governments or any other Minister nominated by each State Governments.
Statement 3 is incorrect: Every decision of the GST Council is taken at a meeting, by a majority of not less than three fourths of the weighted votes of the members present and voting.
Statement 4 is incorrect: The recommendations given by this council are not binding. Recently, supreme court observed that recommendations of the Council as the product of a collaborative dialogue between the Union and States and it is not binding in nature.
| Important Tips Process of Decision making in GST Council: • The decision shall be taken by at least three-fourth majority out of which: • The vote of the Central Government will have onethird of the weightage. • The vote of all the State Governments shall account for two-third of weightage. Any act or proceeding of the Council will not be rendered invalid on the following grounds: • Any vacancy or defect in the Council’s constitution; • Any procedural irregularity of the Council that does not affect the merits of the case. |
