Goods and Services Tax Council: constituted under Article 279A, with the Central Government holding one-third of the weighted vote

Background

The Goods and Services Tax Council was made possible by the 101st Constitution Amendment Act, 2016, which received assent on 8th of September, 2016. As per Article 279A(1) of the Constitution, the Council had to be constituted by the President within 60 days of the commencement of the Constitution (One Hundred and First) Amendment Act, 2016. The notification bringing Article 279A into force with effect from 12th September, 2016 was issued on 10th September, 2016. As per Article 279A(2), the Council consists of the Union Finance Minister, the Union Minister of State in charge of Revenue or Finance, and the Minister in charge of Finance or Taxation or any other Minister nominated by each State Government. The Secretary (Revenue) is the Ex-officio Secretary to the GST Council, and the Chairperson, Central Board of Indirect Taxes and Customs, is a permanent invitee (non-voting) to all proceedings. Where a proposal is put to vote, the vote of the Central Government has a weightage of one-third of the total votes cast and the votes of all the State Governments taken together have a weightage of two-thirds, and the proposal is carried only if the total weighted votes in favour are equal to or greater than three-fourths. The GST Council Secretariat has its office in New Delhi and is manned by officers taken on deputation from both the Central and State Governments. The first meeting of the GST Council was held on 22nd and 23rd September, 2016.