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Economy Cluster257 Verified Questions
GST Council & Tax Administration GK Questions & Answers
The Goods and Services Tax (GST) Council was established pursuant to Article 279A of the Constitution of India, inserted through the Constitution (One Hundred and First Amendment) Act, 2016. Chaired by the Union Finance Minister and comprising State Finance Ministers, the Council serves as the constitutional decision-making body governing India's unified indirect taxation structure, which officially commenced on July 1, 2017. Under Article 279A(4), decisions require a three-fourths (75%) weighted majority of the members present and voting, wherein the Central Government holds one-third (33.33%) of the total cast votes, while all State Governments combined retain two-thirds (66.67%) weightage. The technical architecture is administered by the Goods and Services Tax Network (GSTN), incorporated on March 28, 2013 under Section 25 of the Companies Act, 1956, and later structured as a 100% government-owned entity shared equally between Union and State governments. GST subsumed 17 central and state levies, including Central Excise Duty, Service Tax, State VAT, and Entry Tax, structuring taxation under four primary slabs: 5%, 12%, 18%, and 28%. In Mohit Minerals (2022), the Supreme Court ruled that Council recommendations possess persuasive rather than unqualified binding force on statutory legislative competence.
High-yield conceptual summaries for competitive exams and rapid revision.
The 101st Constitutional Amendment Act, 2016 inserted Article 279A, empowering the President to constitute the GST Council within 60 days of commencement.
The Union Finance Minister serves as the Chairperson of the GST Council, while State Finance or Taxation Ministers nominate one among themselves as Vice-Chairperson.
Under Article 279A(4), decisions of the GST Council require a three-fourths (75%) weighted majority of members present and voting.
The Central Government holds one-third (33.33%) of the total weighted voting power, while all State Governments combined hold two-thirds (66.67%).
The quorum for conducting a valid meeting of the GST Council is one-half of the total number of its constitutional members.
Article 246A confers concurrent legislative powers upon both Parliament and State Legislatures to enact laws levying Goods and Services Tax.
Article 269A governs the levy and collection of Integrated GST (IGST) on inter-state supply of goods and services, apportioned between Union and States.
Goods and Services Tax Network (GSTN) is a Section 8 non-profit company with 100% government equity (50% Union, 50% combined States) managing the IT portal.
GST subsumed 17 distinct indirect taxes and 23 cesses, including Central Excise, Additional Customs Duty (CVD), Service Tax, State VAT, and Octroi.
The standard GST rate structure features four primary non-zero slabs: 5%, 12%, 18%, and 28%, alongside special rates of 0.25% for rough diamonds and 3% for gold.
Petroleum crude, high-speed diesel, motor spirit (petrol), natural gas, and aviation turbine fuel remain temporarily outside GST under Article 279A(5).
Alcohol for human consumption is constitutionally excluded from the scope of GST under Article 366(12A) and remains under State Excise jurisdiction.
The Goods and Services Tax (Compensation to States) Act, 2017 guaranteed compensation to States for five years for revenue loss calculated against a 14% base growth rate.
E-Way bills are mandatory under Rule 138 of CGST Rules for inter-state transportation of goods consignments exceeding a consignment value of INR 50,000.
In Union of India v. Mohit Minerals (2022), the Supreme Court affirmed that GST Council recommendations have persuasive value and cannot override legislative sovereignty.
Which specialized body comprising senior revenue officers examines requests for changes in GST tax rates and exemptions before presenting them to the GST Council?
Verified Explanation
The Fitment Committee of the GST Council comprises joint secretaries and senior tax officials from the Union Ministry of Finance and various State Commercial Tax departments. It reviews economic justifications, revenue implications, and rate anomalies before formulating official recommendations for the GST Council.
2ID: GK-TAX-00558
mediumGST Architecture & GST Council Framework
Under Article 279A(9) of the Constitution of India, what voting weight is allocated to the votes cast by the Central Government in decisions taken by the GST Council?
Verified Explanation
Article 279A(9) of the Constitution stipulates that every decision of the GST Council shall be taken by a majority of not less than three-fourths (75%) of the weighted votes of the members present and voting. In this calculation, the vote of the Central Government carries a weight of one-third (33.33%) of the total votes cast, while the votes of all the State Governments combined carry a weight of two-thirds (66.67%). This institutional design ensures that neither the Centre nor the States can unilaterally pass decisions without mutual consensus.
3ID: GK-TAX-00435
easyGST Architecture & GST Council Framework
At its 50th meeting, what major indirect tax exemption was recommended by the GST Council to boost private space exploration and satellite launch services in India?
Verified Explanation
At its 50th meeting in July 2023, the GST Council extended GST exemption to satellite launch services supplied by private sector organizations (like Skyroot, Agnikul) to create a level playing field with public space agencies like ISRO and Antrix.
4ID: GK-TAX-00257
easyGST Architecture & GST Council
Following the 50th and 51st GST Council meetings in 2023, what uniform GST rate was enacted on actionable claims in online money gaming, casinos, and horse racing?
Verified Explanation
The GST Council in 2023 amended the CGST and IGST Acts to levy a uniform 28% GST on the full face value of bets placed in online money gaming, casinos, and horse racing. This removed ambiguity regarding games of skill versus games of chance for tax liability on actionable claims.
5ID: GK-TAX-00321
hardGST Architecture & GST Council Framework
How was the Maximum Inverted Duty Structure (IDS) refund formula under Rule 89(5) of the CGST Rules amended by the GST Council to resolve disparity between inputs and input services?
Verified Explanation
The GST Council amended Rule 89(5) of the CGST Rules (following Supreme Court rulings) to apportion output tax liability proportionately between input goods and input services in the refund formula, eliminating an anomaly that unfairly reduced refund entitlements for inverted duty structure suppliers.
6ID: GK-TAX-00010
hardGST Architecture & GST Council Framework
Under Article 279A of the Constitution, any decision of the GST Council requires a weighted majority of not less than what proportion of the weighted votes of members present and voting?
Verified Explanation
Article 279A(9) mandates that every decision of the Goods and Services Tax Council shall be taken at a meeting by a majority of not less than three-fourths (75%) of the weighted votes of the members present and voting.
7ID: GK-TAX-00317
mediumGST Architecture & GST Council Framework
In 2023, the GST Council and Parliament amended the CGST and IGST Acts to levy a uniform GST rate of 28% on the full face value of actionable claims in which industry?
Verified Explanation
The CGST (Amendment) Act, 2023 and IGST (Amendment) Act, 2023 established a 28% uniform GST levy on the full face value of bets placed on specified actionable claims, including online money gaming, casinos, and horse racing, eliminating ambiguity between games of skill and games of chance.
8ID: GK-TAX-00555
easyGST Architecture & GST Council Framework
Which constitutional authority serves as the ex-officio Chairperson of the Goods and Services Tax (GST) Council under Article 279A of the Indian Constitution?
Verified Explanation
Under Article 279A(2)(a) of the Constitution of India, the Union Finance Minister serves as the Chairperson of the GST Council. The Council also comprises the Union Minister of State in charge of Revenue or Finance and the Minister in charge of Finance or Taxation or any other Minister nominated by each State Government. The GST Council is the apex federal decision-making body for indirect tax architecture across the country.
9ID: GK-TAX-00028
hardGST Architecture, 101st Amendment & Council
In the landmark 2022 judgment 'Union of India v. Mohit Minerals Pvt Ltd', what did the Supreme Court of India rule regarding the legal nature of GST Council recommendations?
Verified Explanation
In May 2022, a three-judge Supreme Court bench held that the recommendations of the GST Council are not binding on the Union and State legislatures, but rather hold persuasive value, emphasizing that Indian federalism is a dialogue where both the Union and States possess simultaneous legislative powers under Article 246A.
10ID: GK-TAX-00149
hardGST Architecture, 101st Amendment & Council
In the institutional working framework of the GST Council, which technical body is responsible for examining proposals regarding tax rate slabs, exemptions, and classifications before placing them for Council deliberation?
Verified Explanation
The Fitment Committee is a specialized standing committee of Central and State tax officials constituted by the GST Council. It evaluates representations, economic data, and revenue implications regarding rate adjustments, exemptions, and tariff classifications, submitting recommendations directly to the GST Council.