What is Article 279A of Indian Constitution – Defination & Meaning

Article 279A: Goods and Services Tax Council (1) The President shall, within sixty days from the date of commencement of the Constitution (One Hundred and
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279A

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Bare Acts Text

Article 279A: Goods and Services Tax Council

  • (1) The President shall, within sixty days from the date of commencement of the Constitution (One Hundred and First Amendment) Act, 2016, by order, constitute a Council to be called the Goods and Services Tax Council.
  • (2) The Goods and Services Tax Council shall consist of the following members, namely:—
    • (a) the Union Finance Minister — Chairperson;
    • (b) the Union Minister of State in charge of Revenue or Finance — Member;
    • (c) the Minister in charge of Finance or Taxation or any other Minister nominated by each State Government — Members.
  • (3) The Members of the Goods and Services Tax Council referred to in sub-clause (c) of clause (2) shall, as soon as may be, choose one amongst themselves to be the Vice-Chairperson of the Council for such period as they  may decide.
  • (4) The Goods and Services Tax Council shall make recommendations to the Union and the States on—
    • (a) the taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be subsumed in the goods and
      services tax;
    • (b) the goods and services that may be subjected to, or exempted from, the goods and services tax;
    • (c) model Goods and Services Tax Laws, principles of levy, apportionment of Goods and Services Tax levied on supplies in the course of inter-State trade or commerce under article 269A and the principles that govern the place of supply;
    • (d) the threshold limit of turnover below which goods and services may be exempted from goods and services tax;
    • (e) the rates including floor rates with bands of goods and services tax ;
    • (f) any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster;
    • (g) special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram,
      Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and
    • (h) any other matter relating to the goods and services tax, as the Council may decide.
  • (5) The Goods and Services Tax Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel.
  • (6) While discharging the functions conferred by this article, the Goods and Services Tax Council shall be guided by the need for a harmonised structure of goods and services tax and for the development of a harmonised national market for goods and services.
  • (7) One-half of the total number of Members of the Goods and Services Tax Council shall constitute the quorum at its meetings.
  • (8) The Goods and Services Tax Council shall determine the procedure in the performance of its functions.
  • (9) Every decision of the Goods and Services Tax Council shall be taken at a meeting, by a majority of not less than three-fourths of the weighted votes of the members present and voting, in accordance with the following principles, namely:—
    • (a) the vote of the Central Government shall have a weightage of one-third of the total votes cast, and
    • (b) the votes of all the State Governments taken together shall have a weightage of two-thirds of the total votes cast, in that meeting.
  • (10) No act or proceedings of the Goods and Services Tax Council shall be invalid merely by reason of—
    • (a) any vacancy in, or any defect in, the constitution of the Council; or
    • (b) any defect in the appointment of a person as a Member of the Council; or
    • (c) any procedural irregularity of the Council not affecting the merits of the case.
  • (11) The Goods and Services Tax Council shall establish a mechanism to
    adjudicate any dispute—
    • (a) between the Government of India and one or more States; or
    • (b) between the Government of India and any State or States on one side and one or more other States on the other side; or
    • (c) between two or more States,
  • arising out of the recommendations of the Council or implementation thereof.
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Full Definition & Explanation

Article 279A of the Indian Constitution establishes the Goods and Services Tax (GST) Council. This council is a major body formed after the 101st Amendment in 2016. It comprises the Union Finance Minister, the Minister of State for Revenue, and state finance ministers. The council’s primary role is to recommend policies related to GST, including which taxes can be merged into GST and which goods and services are exempted. This affects millions of businesses and consumers across India, providing clarity in the taxation system. The GST Council holds meetings to discuss various matters related to GST and make decisions based on a majority vote. One-third of the votes come from the central government, while two-thirds are from state governments. This unique voting mechanism allows for a balanced approach to taxation, ensuring that both central and state interests are considered. The council can also recommend special rates during natural disasters, showing its adaptability to economic conditions. Additionally, the council is responsible for resolving disputes that may arise between the central and state governments regarding GST implementation. It aims to create a harmonized tax structure across India, promoting ease of doing business. This is particularly impactful for small and medium enterprises, which often struggle with complicated tax systems. By simplifying these processes, Article 279A helps promote economic growth and stability in the country.

Historical Context

This council is a major body formed after the 101st Amendment in 2016. It comprises the Union Finance Minister, the Minister of State for Revenue, and state finance ministers. The council’s primary role is to recommend policies related to GST, including which taxes can be merged into GST and which goods and services are exempted. This affects millions of businesses and consumers across India, providing clarity in the taxation system. Article 279A of the Indian Constitution establishes the Goods and Services Tax (GST) Council. The GST Council holds meetings to discuss various matters related to GST and make decisions based on a majority vote.

Key Features

– The GST Council is constituted by the President within sixty days of the amendment.
– It includes the Union Finance Minister and state finance ministers as members.
– The council recommends which taxes can be merged into GST.
– Decisions are made by a three-fourths majority vote of members present.
– The council resolves disputes between the central and state governments.

Importance & Impact

– The GST Council simplifies the tax structure for businesses across India.
– It ensures both central and state governments have a say in taxation.
– The council can recommend special tax rates in emergencies
– It promotes a uniform market for goods and services nationwide.
– Dispute resolution mechanisms help maintain harmony between states

Sample UPSC Question

Consider the following statements regarding Article 279A of the Indian Constitution: A) It establishes the Goods and Services Tax Council. B) The council members include only Union ministers. C) The council recommends tax rates and exemptions. D) One-third of the votes come from the states. Which of the statements is/are correct? A) Only A and B B) A and C only C) A, C and D only D) All of the above.

Answer

The correct answer is C) A, C and D only. Article 279A establishes the GST Council and involves central and state participation in decision-making, but it does not limit membership to Union ministers only. Article 279A of the Indian Constitution establishes the Goods and Services Tax (GST) Council.

Key Takeaways

✓ Article 279A forms the GST Council for tax recommendations.
✓ The council includes both central and state finance ministers.
✓ Decisions require a majority of votes from members.
✓ The council can suggest special rates for emergencies.
✓ It resolves disputes to maintain tax harmony

FAQs

Article 279A of the Indian Constitution establishes the Goods and Services Tax (GST) Council. This council is a major body formed after the 101st Amendment in 2016. It comprises the Union Finance Minister, the Minister of State for Revenue, and state finance ministers. The council’s primary role is to recommend policies related to GST, including which taxes can be merged into GST and which goods and services are exempted.

One-third of the votes come from the central government, while two-thirds are from state governments. This unique voting mechanism allows for a balanced approach to taxation, ensuring that both central and state interests are considered. The council can also recommend special rates during natural disasters, showing its adaptability to economic conditions.

It aims to create a harmonized tax structure across India, promoting ease of doing business. This is particularly impactful for small and medium enterprises, which often struggle with complicated tax systems. By simplifying these processes, Article 279A helps promote economic growth and stability in the country. Article 279A of the Indian Constitution establishes the Goods and Services Tax (GST) Council.

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