Discuss the composition and functions of the GST Council as proposed in the Constitution (122nd Amendment) Bill, 2014.

Model Answer:
GST Council will be a constitutional body established by president of India. It’s composition will be as follows:

• Chairman – Union Finance Minister
• Minister of State (Finance)
• Finance Minister as member from each state

The meetings of the GST Council can proceed with a quorum of 50 percent and decisions will be taken with at least three-fourth weighted majority voting for a resolution. All decisions of the GST Council will be made by three-fourth majority of the votes cast; the centre shall have one-third of the votes cast, and the states together shall have two-third of the votes cast.
 Functions of GST Council

• The functions of the GST council would be to make recommendation on:
• What taxes, cesses, and surcharges to be subsumed under the GST?
• What goods and services are subject to, or exempted from GST?
• The threshold limit of turnover for application of GST
• Rates of GST
• Model GST laws, principles of levy, apportionment of IGST and principles related to place of supply
• Special provisions with respect to the eight north eastern states, Himachal Pradesh, Jammu and Kashmir, and Uttarakhand
• Other related matters