What are the important functions of GST council.

Question

Philoid · Accepted Answer

Goods and Services Tax (GST) was introduced in India on 1^st July 2017 merging different indirect taxes imposed by the central and state governments, into one unified tax system. The policy decisions relating to this tax is made by the GST council in the centre. Union Finance Minister is the chairman of the GST council.

The important functions of the GST Council are to make recommendation on the following matters: -

•What taxes, cess and surcharges that are to be merged into GST.

•Which goods and services that are to be brought under GST.

•Determining the different GST rates.

•The time frame for including the excluded items into GST.

•Determining the tax exemption limit on the basis of total turnover.

The GST system has led to the elimination of multiple taxes, and thereby increased the ease of doing business in India and contributed to an increase in the GDP of the country.