GST and Council

3 min read

Introduced

  • 101st Constitution Amendment Act, 2016

Slogan

  •  ‘One Nation One Tax’.

Legislative Basis :

🔸️In India, GST Bill was first introduced in 2014 as The Constitution (122nd Amendment) Bill. 🔸️This got an approval in 2016 and was renumbered in the statute by Rajya Sabha as The Constitution (101 Amendment) Act, 2016.

Subsumed Indirect Taxes

  • Excise duty,
  • Value Added Tax (VAT),
  • Service tax,
  • Luxury tax etc.

4-Tier Tax Structure

  • 5%,
  • 12%,
  • 18% and
  • 28%.

Components

  • Central GST (CGST),
  • State GST (SGST),
  • Union Territories GST (UTGST), and
  • Integrated GST (IGST).

The Goods and Services Tax Council :

Constitutional body , Article 279A Secretariat - New Delhi Chairperson - The Union Finance Minister️ Vice - Chairperson - Council from the States have to choose one amongst themselves as the Vice-Chairperson of the Council. Members: 🔸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

Govt halts monthly GST releases as high collections ‘creating resentment’

July 2024 was first time no official release on GST collections was issued

for the first time since the rollout of GST in July 2017 — excluding the first few lockdown-affected months in 2020 — the Ministry of Finance did not issue an official press release regarding the collections and breakup of revenue under GST.

The releases are usually issued on the first day of each month

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Average collections so far (April-June 2024) in this financial year stood at Rs 1.86 lakh crore, which is the highest so far since GST was introduced.

The difference between GST and income tax, he explained, is that not everybody pays income tax, while nearly everyone pays GST, since it is a consumption-based tax

The growth in the gross GST collections can be attributed to the widening of the tax base and the increased compliance

Once refunds are accounted for, the actual government revenue has only now reached pre-GST levels as a percentage of the country’s gross domestic product (GDP) - former chief economic advisor Arvind Subramanian.

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July 2025

Karnataka state commercial tax department issues notices to traders

  • The state government department issued 9000 notices to all traders whose annual transactions exceeded the limit of 40 lakhs, who has a pending of GST payments.
  • After a huge protest from the small traders and association related to them, the state government got back the idea.
  • But, the state government asked them to mandatorily register their business under the GST and pay taxes promptly in future.
  • Principal goods or food items and street vendors selling agricultural commodities are exempted from paying GST.
  • There are confusion among small traders regarding GST notices, which often include loan amounts and personal transactions.
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