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the GST Council, can notify an activity to be the supply of goods and not supply of 07. Article 279A- GST Councils and recommendation of GST councils
CH 1
services or supply of services and not supply of goods or neither a supply of goods nor CCP 01.07.16.00
a supply of services.
Write a short note on Goods and Services Tax Council. (RTP - ICAI)
Answer :- Article 279A of the Constitution empowers the President to constitute a
06. Levy of taxes on various product along with GST joint forum of the Centre and States namely, Goods & Services Tax Council (GST Introduction of GST

CCP 01.06.14.00 Council).
What are the taxes that will continue post GST? Ø The provisions relating to GST Council came into force on 12th September, 2016.

Answer : The taxes that will continue after GST are President constituted the GST Council on 15th September, 2016.
a. Basic Customs Duty Ø The Union Finance Minister is the Chairman of this Council and Ministers in
b. Export Duty charge of Finance/Taxation or any other Minister nominated by each of the
c. Stamp Duties & Property Tax States & UTs with Legislatures are its members.
d. Electricity Duties Besides, the Union Minister of State in charge of Revenue or Finance
e. Taxes on professions, trades, callings and employments is also its member.
f. Excise duty on alcohol for human consumption, Petroleum Products Ø The function of the Council is to make recommendations to the Union and the

States on important issues like tax rates, exemptions, threshold limits, dispute
CCP 01.06.15.00 resolution etc. The GST Council has decided the threshold exemption,

ITC ltd is a company manufactures Cigarette and supply it to the distributor Mr. composition threshold, GST rates, GST legislations including rules and
Z for `2,00,000 on which charged excise duty as well as GST. Mr Z further notifications.
supplied to the retailer Mr. R for ` 2,20,000 and charged GST. Explain whether
treatment by ITC Ltd. & distributor Mr. Z is correct or not CCP 01.07.17.00

Answer:- In case of Tobacco and Tobacco product manufacture would be subject to Enumerate any five matters on which the GST Council may make
GST in addition, the central would have the power to levy central excise duty on these recommendations under Article 279A of the Constitution of India. [CA final Nov
product. 19 Exam New]
Therefore treatment by ITC Ltd on supply of the tobacco & tobacco Answer:- The matters on which the GST Council may make recommendations under
product is correct. Recipient of supply (i.e. Mr. Z) can take ITC only of GST. Article 279A of the Constitution of India are as under:-
In case of further supply by Mr. Z to the retailer Mr. R would be subject (I) the taxes, cesses and surcharges levied by the Union, the States and the local

to GST only, therefore treatment by Mr.Z is correct. bodies which may be subsumed in GST;
(ii) the goods and services that may be subjected to, or exempted from GST;
(iii) model GST Laws, principles of levy, apportionment of GST levied on supplies in

the course of inter-State trade or commerce and the principles governing the

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CA Final GST Questioner