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CA Intermediate · Taxation · GST in India - An Introduction

Which statement about the GST Council is correct?

The GST Council is chaired by the Union Finance Minister, and it makes recommendations on matters such as tax rates, exemptions and thresholds. Its members include the Union Minister of State for Revenue or Finance and the State Ministers in charge of Finance or Taxation.

  1. AIt is chaired by the Union Finance Minister and its recommendations are made on matters such as rates and exemptionsCorrect
  2. BIt is chaired by the Prime Minister
  3. CIt consists only of Union Ministers
  4. DIt is chaired by the Chief Minister of the State chosen annually

Explanation

Under Article 279A of the Constitution, the GST Council is chaired by the Union Finance Minister, with the Union Minister of State in charge of Revenue or Finance and the State Ministers in charge of Finance or Taxation as members. It recommends on rates, exemptions, thresholds and model laws. Other options misstate its composition.

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