Cabinet clears setting up of GST council

Only after its recommendations will the central GST, integrated GST and state GST Bills be taken up

The Cabinet on Monday cleared a proposal to set up the Goods and Services Tax (GST) Council, which would recommend on draft model GST Bill, tax rate and contentious issues of dual control over assessment, scrutiny over assesses so that the new indirect tax system could be introduced from April 1, 2017. 

Sources said that the Cabinet approved the proposal, incorporated in the Constitution amendment Bill on GST.

President Pranab Mukherjee gave his assent to the Constitution amendment Bill on GST last week, making it a law. The Act was also put on the official gazette last week.

The next big step in the direction of GST is constituting the Council. The Constitution amendment Bill says that the President will set up the Council within 60 days of the Bill becoming law. 

The council, which will comprise Union finance minister, minister of state for finance in charge of revenue, state finance ministers or any other minister nominated by states, will recommend on draft model GST Bill. Only after its recommendations will the central GST and integrated GST Bills be taken up by Parliament and state GST Bills by respective states. 

The Council will be chaired by the Union finance minister. The government has fixed a target to introduce GST from April 1, 2017, while admitting that the goal is stiff.