Goods and Services Tax (GST)

 Goods and Services Tax (GST)

Constitutional Amendment Act (CAA)

• Introduced through the 101st Constitutional Amendment Act, 2016
• Effective from 1st July 2017

Type of Tax

• Indirect Tax (destination-based, multi-stage, value-added tax)
• Subsumed Central and State taxes like excise, service tax, VAT, entry tax, etc.

Key Features

• Dual GST structure: CGST (Central GST) + SGST (State GST) + IGST (Integrated GST)
• Destination-based (tax accrues where goods/services are consumed, not produced)
• Aim: One Nation, One Tax, One Market

GST Council

• Created under Article 279A of the Constitution
• Apex body for GST-related decisions

Members of GST Council

1. Chairperson – Union Finance Minister
2. Union Minister of State (Finance/Revenue)
3. State Finance/Taxation Ministers (from all States & UTs with legislature)

Voting Pattern

• Decisions by ≥ 75% majority of weighted votes
• Union Government → 1/3rd of total votes
• States (all combined) → 2/3rd of total votes

Quorum

• The meeting is valid only if at least 50% members are present.