Gst council

CA Amrita Chattopadhyay (Audit & Assurance) (13029 Points)

17 August 2016  

GST council is going to be one of the decision making body of GST. Its responsibility is to decide the GST rates, GST on petro products, exemption list and the problem of dual jurisdiction etc.

Composition of GST council includes:

It has 33 1/3% of votes from Centre and 66 2/3% votes from various states.  To make a single decision the requirement of votes is 75%. Now if we look into the present situation, if even all the states pooled their votes together they cannot make 75% hence practically the centre has the Veto power. 

The centre has 33% votes and in any case the ruling front generally have state governments of their own in more than 50% states so in that case centre with the help of its own state government can take a decision because in that case it needs 42% votes from the states. 

So in the GST council the position of Centre is very strong. GST will not only make the Centre economically strong but also give it strong decision making power as compared to the states.