All India Bar Examination (AIBE) 15-XV Previous Year Question Papers with Answers

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51.

Under Article 279A GST Council is constituted by

A: Prime Minister and his Council of Ministers
B: Respective Governors of the State
C: The President
D: A collective body of Union and States

The answer is: C

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Explanation

The correct option is C: The President.

According to Article 279A (1) of the Constitution of India, the President shall, within sixty days from the date of commencement of the Constitution (One Hundred and First Amendment) Act, 2016, by order, constitute a Council to be called the Goods and Services Tax Council. The GST Council is a joint forum of the Centre and the States, which makes recommendations on important issues related to GST, such as the taxes, cesses, and surcharges that may be subsumed in the GST, the goods and services that may be subjected to or exempted from the GST, the GST rates, the threshold limit of turnover, etc.

The GST Council consists of the following members: the Union Finance Minister as the Chairperson, the Union Minister of State in charge of Revenue or Finance as a Member, and the Minister in charge of Finance or Taxation or any other Minister nominated by each State Government as Members. The Members of the GST Council choose one among themselves to be the Vice-Chairperson of the Council for such period as they may decide. The GST Council is guided by the need for a harmonised structure of GST and for the development of a harmonised national market for goods and services. Every decision of the GST Council is taken by a majority of not less than three-fourths of the weighted votes of the members present and voting, with the vote of the Central Government having a weightage of one-third of the total votes cast, and the votes of all the State Governments taken together having a weightage of two-thirds of the total votes cast. The GST Council has a Secretariat, with its office at New Delhi, and the Secretary (Revenue) as the Ex-officio Secretary to the GST Council. The Chairperson, Central Board of Excise and Customs (CBEC), is a permanent invitee (non-voting) to all proceedings of the GST Council. The GST Council also has one Additional Secretary and four Commissioners in its Secretariat. The GST Council was established on 12th September, 2016, and has held 44 meetings so far.