Why in News ? 

• 50th meeting of GST Council decided to impose 28% of GST on online gaming firms.
• Other outcomes of 50th GST Council were ;
• Reduced Tax on uncooked or unfried snacks
• Clarified Tax on Special Utility Vehicles (SUVs).
• Exempted import drugs which treats cancer and rare diseases.
• Imposed Tax on Online gaming, Casinos, Horse Racing.

The Goods and Services Tax (GST) Council is a constitutional body established under the provisions of the Constitution (One Hundred and First Amendment, 101) Act, 2016 in India.

Formed under Article 279A of the Indian Constitution.

It is responsible for making important decisions regarding the implementation and administration of the Goods and Services Tax

Composition:

• The GST Council is chaired by the Union Finance Minister.
• The Union Minister of State in charge of Revenue or Finance and the Minister in charge of Finance or Taxation from each state are also members of the council.
• This makes it a joint forum of the Central and State governments.
• The representatives of the states shall choose amongst themselves one “Vice-president”.
• In addition, the Union Cabinet decided to make the Chairperson of the Central Board of Excise and Customs (CBEC) a permanent invitee (non-voting) to all Council proceedings.

Decision-Making:

• The GST Council operates on the principle of consensus, and all decisions are taken collectively by the Council members.
• However, the voting power is distributed between the Central government and the State governments.
• The Central government has one-third of the total votes, while the State governments together have two-thirds of the votes.

Functions

• Making recommendations on issues related to the implementation of GST, such as tax rates, exemptions, and thresholds.
• Reviewing the goods and services that should be subject to GST or exempted from it.
• Making recommendations on any special rates or provisions for specific industries or states.
• Ensuring the harmonisation of GST laws, rules, and procedures across the country.
• Resolving any disputes that may arise among the members of the GST Council
• In addition, the council shall also recommend the date on which the GST may be levied on petroleum crude, high-speed diesel, petrol, natural gas and aviation turbine fuel.

Meetings:

• The GST Council meets periodically to discuss and decide on various issues related to GST.
• The Council is required to meet at least once every quarter and may also have special meetings as and when required.

Significance:

• The GST Council plays a crucial role in the functioning and implementation of the Goods and Services Tax in India.
• It acts as a platform for dialogue and coordination between the Central and State governments, ensuring a cooperative federalism approach in tax administration.

 Chapter no. 48 of Laxmikant Indian Polity