Understanding the GST Council and the Indian Constitution

The Goods and Services Tax (GST) is a major indirect tax reform in India. To facilitate the implementation and administration of GST, the Constitution of India provides for the creation of a dedicated body known as the GST Council. This council plays a crucial role in making recommendations on various aspects of GST.

Constitutional Provision for GST Council

The power to create the GST Council is derived from a specific Article inserted into the Constitution of India through the Constitution (One Hundred and First Amendment) Act, 2016. This amendment paved the way for the implementation of GST in India.

Let's examine the relevant Articles mentioned in the options:

• Article 246A: This Article grants concurrent power to both the Parliament and the State Legislatures to make laws with respect to GST imposed by the Union or by such State. It deals with the power to legislate on GST, not the creation of the GST Council.
• Article 279A: This Article specifically provides for the constitution of a GST Council by the President. It lays down the framework for the establishment, composition, and functions of the GST Council.
• Article 269A: This Article deals with the levy and collection of Goods and Services Tax in the course of inter-State trade or commerce (Integrated GST or IGST). It specifies that IGST shall be apportioned between the Union and the States as per the recommendations of the GST Council. While related to GST, it is not about the creation of the Council itself.
• Article 323A: This Article deals with Administrative Tribunals. It is completely unrelated to the Goods and Services Tax or the GST Council.

Based on the constitutional provisions, Article 279A is the specific Article that mandates the creation of the GST Council.

Therefore, the Article of the Constitution of India that provides for the creation of a GST Council is Article 279A.

Revision Table: Key GST Articles

Additional Information on GST Council

The GST Council is a constitutional body under Article 279A. It is a joint forum of the Centre and the States. The members include:

• The Union Finance Minister (Chairperson)
• The Union Minister of State in charge of Revenue or Finance
• The Minister in charge of Finance or Taxation or any other Minister nominated by each State Government

The Council makes recommendations to the Union and the States on important issues related to GST, such as:

• The taxes, cesses, and surcharges to be subsumed under GST.
• The goods and services that 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 for exemption from GST.
• Rates, including floor rates with bands of GST.
• Any special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.
• Any other matter relating to GST, as the Council may decide.