» GST is proposed to have a dual structure. It will have two components: Central GST and State GST. Central GST will replace Central excise duty, services tax and additional customs duties etc. and will be levied by the centre. State GST will replace VAT, Central State Tax, entertainment tax, luxury tax, lottery tax, electricity duty etc. and will be levied by the states.
» As per Article-279 (1) of the amended Constitution, the GST Council was to be constituted by the President within 60 days of the commencement of Article 279A. This is a joint forum of centre & state.
GST Council Members
» GST Council consists of the following members
1. Union Finance Minister who will be the Chairperson
2. The Union Minister of state, in-charge of Revenue of Finance.
3. The Minister in charge of Finance or Taxation or any other Minister, nominated by each state government.
» The Secretary (Revenue) is the Ex-officio Secretary to GST Council.
» The Chairperson, Central Board of Excise and Custom (CBEC), is a permanent invitee (non voting) to all proceedings of the GST Council.
» The decisions will be made by a three-fourth majority of votes cast.
» The GST Council provides veto power to centre along with state governments.
» The centre shall have a third of votes cast, States shall together have two thirds
» The GST Council will make recommendations on:
1. Taxes, cesses, and surcharges to be subsumed under the GST;
2. Goods and services which may be subject to, or exempt from GST;
3. The threshold limit of turnover for application of GST; rates of GST;
4. Model GST laws, principles of levy, apportionment of IGST and principles related to place of supply;
5. Special provisions with respect to the eight northeastern states, Himachal Pradesh, Jammu and Kashmir, and Uttarakhand; and other related matters.