Focus: GS-III Indian Economy
Why in news?
Looking to ease compliance burden on businesses, the Goods and Services Tax Council decided provide relief to taxpayers on late fee and interest payable on delayed tax payments.
The Council reduced late fee and interest for those businesses with tax liabilities and waived off late fee completely for those with no tax liabilities.
GST collections had fallen to about 45%, aggravating the problem of compensation to states, even as states have demanded they be funded through market borrowing.
- GOODS & SERVICES TAX COUNCIL IS A CONSTITUTIONAL BODY for making recommendations to the Union and State Government on issues related to Goods and Service Tax.
- 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 Constitution (One Hundred and Twenty-Second Amendment) Bill, 2016, for introduction of Goods and Services tax in the country was introduced in the Parliament and passed by Rajya Sabha on 3rd August, 2016 and by Lok Sabha on 8th August, 2016.
- GST Council is an apex member committee to modify, reconcile or to procure any law or regulation based on the context of goods and services tax in India.
- The GST council is responsible for any revision or enactment of rule or any rate changes of the goods and services in India.
The council contains the following members:
- Union Finance Minister (as chairperson)
- Union Minister of States in charge of revenue or finance (as member)
- The ministers of states in charge of finance or taxation or other ministers as nominated by each states government (as member).
GST Council makes recommendations on:
- Taxes, cesses, and surcharges levied by the Centre, States and local bodies which may be subsumed in the GST;
- Goods and services which may be subjected to or exempted from GST;
- Model GST laws, principles of levy, apportionment of IGST and principles that govern the place of supply;
- Threshold limit of turnover below which goods and services may be exempted from GST;
- Rates including floor rates with bands of GST;
- Special rates to raise additional resources during any natural calamity;
- Special provision with respect to Arunachal Pradesh, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and
- Any other matter relating to the goods and services tax, as the Council may decide.
-Source: Economic Times