Introduction
The Goods and Services Tax (GST) Council is a constitutional body in India responsible for making recommendations to the government on issues related to GST. It was formed on 15th September 2016 after the implementation of GST on 1st July 2017.
Composition
The GST Council is chaired by the Union Finance Minister and includes the finance ministers of all the states and union territories. The decisions are taken through a voting system, with the union government holding a one-third weightage and all state governments holding a two-third weightage.
Functions
The primary functions of the GST Council include recommending tax rates, exemptions, and threshold limits, making recommendations on the administration of GST, and resolving any disputes that may arise among the members.
Examples
One of the key roles of the GST Council is to revise tax rates based on the economic conditions and revenue collections. For example, during the COVID-19 pandemic, the council reduced tax rates on essential items to provide relief to the common man.
Case Studies
One significant decision taken by the GST Council was the implementation of the e-invoicing system to curb tax evasion and improve compliance. This move has helped in streamlining the tax collection process and reducing fraudulent activities.
Statistics
According to official data, the GST collections for the financial year 2020-21 stood at Rs 12.71 lakh crore, showcasing the efficiency of the GST Council in managing tax revenues.
