GST Council Chairman (Members Composition) Meeting

GST Council Chairman and Memebers : Check out GST Council Meeting Members Composition, and Who is the Chairman (Head) for a GST Council Meeting. The Constitution of India is the authority under which the GST Council is created. The first meeting of the GST Council was held last September headed by Arun Jaitely. Also read our earlier posts on Composition Scheme under GST and Input Tax Credit under GST.

GST Council Members Composition:

The following persons shall form composition of GST Council and its Meetings:

  • The Union Minister of State, in-charge of Revenue of finance
  • Finance Ministers of Each individual State in India

GST Council Chairman

The Union Finance Minister shall be the Chairman of GST Council and also the Head. The current FM is Arun Jaitley, and therefore, we can say he is the Head and Chairman of a GST Council Meeting.

Who is the Additional Secretary of GST Council

Senior IAS officer Arun Goyal has been appointed as Additional Secretary in the Goods and Services Tax (GST) Council.

Goyal, a 1985 batch IAS officer of Union Territory cadre, is at present working as Additional Secretary, Project Monitoring Group, Cabinet Secretariat.

Composition of GST Council Secretariat

GST council secretariat to have all IRS officers. All the states Value Added Tax officers are being trained by IRS officers all over the country.

GST Operation

Sale in one state, resale in the same state

In the example illustrated below, goods are moving from Mumbai to Pune. Since it is a sale within a state, CGST and SGST will be levied. The collection goes to the Central Government and the State Government as pointed out in the diagram. Then the goods are resold from Pune to Nagpur.

This is again a sale within a state, so CGST and SGST will be levied. Sale price is increased so tax liability will also increase. In the case of resale, the credit of input CGST and input SGST (Rs. 8) is claimed as shown; and the remaining taxes go to the respective governments.

Sale in one state, resale in another state

In this case, goods are moving from Indore to Bhopal. Since it is a sale within a state, CGST and SGST will be levied. The collection goes to the Central Government and the State Government as pointed out in the diagram. Later the goods are resold from Bhopal to Lucknow (outside the state). Therefore, IGST will be levied. Whole IGST goes to the central government.

Against IGST, both the input taxes are taken as credit. But we see that SGST never went to the central government, still the credit is claimed. This is the crux of GST. Since this amounts to a loss to the Central Government, the state government compensates the central government by transferring the credit to the central government.

Sale outside the state, resale in that state

In this case, goods are moving from Delhi to Jaipur. Since it is an interstate sale, IGST will be levied. The collection goes to the Central Government. Later the goods are resold from Jaipur to Jodhpur (within the state). Therefore, CGST and SGST will be levied.

Against CGST and SGST, 50% of the IGST, that is Rs. 8 is taken as a credit. But we see that IGST never went to the state government, still the credit is claimed against SGST. Since this amounts to a loss to the State Government, the Central government compensates the State government by transferring the credit to the State government.

A GST Council Meeting consists Members representing the State Governments of India. However, as the Head and Chairman of the GST Council Meeting, the Union Finance Minister will have Suo-moto powers. Some of the important Policy decisions such as Rate of Tax under GST, Exemptions etc are taken in a GST Council Meeting.