Why in News?
UGC has released a draft Learning Outcomes-based Curriculum Framework (LOCF) for key subjects, integrating Indian knowledge systems like Kautilya’s Arthashastra, temple geometry, traditional beverages, and dharmic economic thought—sparking debates over alleged curriculum saffronisation and inviting stakeholder feedback.
Description:
- Established under 101st Constitutional Amendment Act, 2016.
- Mentioned in Article 279A.
- Constitutional body – cooperative federal platform for Union & States.
Composition (Article 279A):
- Chairperson: Union Finance Minister.
- Vice-Chairperson: Elected by members (State FMs).
- Members:
- Union Minister of State for Finance/Revenue.
- Finance/Taxation Ministers of all States/UTs with legislature.
- Permanent Invitee (non-voting): Chairperson of CBIC.
- Ex-officio Secretary: Union Revenue Secretary.
Objectives:
- Harmonised GST structure across India.
- Eliminate the cascading effect of taxes.
- Simplify compliance & reduce cost.
- Promote cooperative federalism in tax matters.
Constitutional Provisions:
- Formation: President to form GST Council within 60 days of the commencement of 101st CAA (2016).
- Article 279A (4): Council recommends on:
- Taxes to be subsumed under GST.
- Goods/services under or exempt from GST.
- Model GST laws & interstate trade levy (Art. 269A).
- Threshold turnover limit for exemption.
- GST rates & floor rates with bands.
- Special rates during natural calamities/disasters.
- Special provisions for NE states, J&K, HP, Uttarakhand, Sikkim.
- Article 279A (6): Council to promote a unified national market.
- Article 279A (7): Quorum – at least half of members.
- Article 279A (9): Voting –
- Centre’s vote = 1/3rd weightage.
- All States together = 2/3rd weightage.
- The decision needs 3/4th majority of weighted votes present.
- Article 279A (10): Validity of proceedings unaffected by vacancies.
- Article 279A (11): Mechanism for resolving GST disputes.
Functions of GST Council:
- Recommend GST rates, exemptions, floor rates with bands.
- Decide compensation to the state’s mechanism.
- Recommend laws for place of supply & apportionment of IGST.
- Fix threshold turnover limit for exemption.
- Recommend special rates during calamities.
- Decide on GST compliance mechanisms (filing, returns, IT infra).
Working of GST Council:
- Collaborative forum of Union + States.
- Quorum: 50% members.
- Decision: 75% weighted votes required.
- Centre = 1/3rd, States = 2/3rd weightage.
Major Outcomes:
- Dual GST model – CGST + SGST/UTGST.
- 5 tax slabs – 0%, 5%, 12%, 18%, 28%.
- Composition Scheme for small taxpayers.
- Input Tax Credit (ITC) mechanism.
- Online GSTN portal.
Recent GST Council Developments (2024–25):
- 53rd Meeting: GST on paper cartons/boxes reduced (18% → 12%); uniform 12% on all milk cans.
- 54th Meeting: GST on cancer drugs reduced (12% → 5%).
- 55th Meeting:
- FRK (Fortified Rice Kernel) GST reduced to 5%.
- Gene therapy – GST exempted.
- Used vehicles GST margin increased (12% → 18%).
- Compensation Cess reduced to 0.1% on supplies to merchant exporters.
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