49th meeting of GST Council to take place in New Delhi

Tags: National Economy/Finance National News

The 49th meeting of the GST Council was held on 18 February in New Delhi.

An overview of the news

• The meeting, chaired by Finance Minister Nirmala Sitharaman, discussed setting up appellate tribunals and mechanisms to prevent tax evasion in the pan masala and gutkha business.

• After the Union Budget was presented earlier this month, the GST Council meeting has offered to extend the 50-year interest-free loan to states for one more year.

About GST Council

• To implement GST, the Constitutional (122nd Amendment) Bill was passed by both the Houses of the Parliament in 2016.

• The GST Council has been notified as a constitutional body to deal with issues related to GST.

• It is a joint forum of the Center and the States which was established by the President in accordance with Article 279A (1) of the amended Constitution.

Members of GST Council

• Union Finance Minister (Chairman), Union Minister of State (Finance) from the Centre.

• Each state minister in charge of finance or taxation or any other minister may be nominated as a member.

Functions of GST Council

• To make recommendations to the Center and the States on important issues relating to GST.

• It also decides on various rate slabs of GST. 

What is the Goods and Services Tax (GST)?

• It was introduced through the 101st Constitution Amendment Act, 2016.

• It is one of the biggest indirect tax reforms in the country and was introduced with the slogan of ‘One Nation One Tax’.

• GST subsumes indirect taxes like excise duty, value added tax (VAT), service tax, luxury tax etc.