New Delhi, Sep 12 (KNN) The Union Cabinet under the Chairmanship of Prime Minister Narendra Modi today approved setting up of GST Council and its Secretariat to decide on the rate of tax under the new indirect taxation regime.

The council would be headed by the Union Finance Minister Arun Jaitley and comprising of representative of all 29 states and two union territories, will have to be set up by November 11.

The council It will decide on the tax rate, exemptions and threshold limits in the new indirect tax regime, which is expected roll from April 1, 2017.

The government has notified September 12, as the date from which the procedure for setting up of the GST Council will be initiated and which will be completed within 60 days.

Cabinet under the Chairmanship of Prime Minister Narendra Modi has approved setting up of GST Council as per Article 279A of the amended Constitution. 

The cabinet has also decided the creation of the GST Council Secretariat, with its office at New Delhi, appointment of the Secretary (Revenue) as the Ex-officio Secretary to the GST Council,Inclusion of the Chairperson, Central Board of Excise and Customs (CBEC), as a permanent invitee (non-voting) to all proceedings of the GST Council;

The Cabinet also decided to provide for adequate funds for meeting the recurring and non-recurring expenses of the GST Council Secretariat, the entire cost for which shall be borne by the Central Government. The GST Council Secretariat shall be manned by officers taken on deputation from both the Central and State Governments.

The steps required in the direction of implementation of GST are being taken ahead of the schedule so far.

The Finance Minister has also decided to call the first meeting of the GST Council on 22nd and 23rd September 2016 in New Delhi.

Parliament on August 8 had passed the bill, which then went to the states for ratification. A Constitution Amendment Bill needs to be ratified by the legislative Assemblies of at least 50 per cent of the 29 states and 2 union territories.

The bill was sent to the President's secretariat after as many as 19 states - BJP-ruled Assam being the first - ratified the bill.

The other states, which passed the legislation include Bihar, Jharkhand, Chhattisgarh, Himachal Pradesh, Gujarat, Madhya Pradesh, Delhi, Nagaland, Maharashtra, Haryana, Sikkim, Mizoram, Telangana, Goa, Odisha and Rajasthan.  (KNN Bureau)