Union Cabinet approves the formation of GST Council
Q. Union Cabinet approved the formation of the GST Council as per which article of the amended Constitution?- Published on 13 Sep 16a. 279A
b. 279B
c. 279C
d. 279D
ANSWER: 279A
Union Cabinet on 12th September 2016 approved the process, formation and functioning of the Goods and Services Tax Council
- Council will comprise FM and state Finance Ministers making recommendations on important issues pertaining to GST including items and rates
- Creation of the GST Council is as per A279A of the amended Constitution
- Creation of the GST Council Secretariat took place with its office in New Delhi
- Appointment of the Secretary (Revenue) as the Ex Officio Secretary to the GST Council also took place
- Chairpersons were included while CBEC was a permanent invitee (non-voting) on all proceedings of the GST Council
- A post of additional secretary to the GST Council in the GST Council Secretariat and 4 posts of Commissioner in the GST Council Secretariat was also approved
- As per Article 279A of the amended Constitution, GST Council shall comprise the following members:
- Union Finance Minister- Chairperson
- Member: Union Minister of State in Charge of Revenue of Finance
- Members: Minister in charge of finance or taxation or any other minister nominated by the state government
- On September 8, 2016 President Pranab Mukherjee have assent to the 122nd Constitutional Amendment Bill paving the way for the rollout of GST
- The new tax regime will do away with indirect taxes ushering in one tax for the entire country
- Around 18 states have ratified the bill
- GST is a single indirect tax which will subsume most of the central and state taxes as VAT, excise duty, service tax and CST
