GST Council and GST Reforms
Why in news:
India’s GST Council, in its 56th meeting, has overhauled the indirect tax system by moving to a two-rate structure of 5% and 18%, along with a special 40% rate on luxury and harmful goods such as tobacco, large cars, yachts, and helicopters.
UPSC Relevance
Prelims, GS3, Budgeting
PYQ’s:
2018 Prelims
With reference to India’s decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct?
- It is introduced as a part of the Income Tax Act.
- Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the “Double Taxation Avoidance Agreements”.
Select the correct answer using the code given below:
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
2024
Consider the following items:
- Cereal grains hulled
- Chicken eggs cooked
- Fish processed and canned
- Newspapers containing advertising material
Which of the above items is/are exempted under GST (Goods and Services Tax)?
1 only
2 and 3 only
1, 2 and 4 only
1, 2, 3 and 4
Mains 2020 – Explain the rationale behind the Goods and Services Tax (Compensation to States) Act of 2017. How has COVID-19 impacted the GST compensation fund and created new federal tensions?
About GST Council:
- As per Article 279A (1) of the amended Constitution, the GST Council has to be constituted by the President within 60 days of the commencement of Article 279A. The notification for bringing into force Article 279A with effect from 12th September, 2016 was issued on 10th September, 2016.
As per Article 279A of the amended Constitution, the GST Council which will be a joint forum of the Centre and the States, shall consist of the following members: –
- Union Finance Minister – Chairperson
- b) The Union Minister of State, in-charge of Revenue of finance – Member
- c) The Minister In-charge of finance or taxation or any other Minister nominated by each State Government – Members
Voting Power:
- 1/3rd- Centre Govt.
- 2/3rd- State Govt.
- 3/4th- for final decision
GST Council Meeting:
56th Meeting of the GST Council held at New Delhi, today
For GST Reform:- https://anantamias.com/current-affairs/gst-reforms/