Article 279A of Constitution

Introduction 

Article 279A was added to the Constitution in 2016 to create the Goods and Services Tax Council, which brought together the Centre and all States to make unified tax decisions. This Council was established to solve the problem of having multiple tax systems across different states and create one harmonized tax structure. The GST Council ensures that both the central government and state governments work together in tax matters, making it one of India's biggest tax reforms. This constitutional provision helps avoid conflicts between Centre and States by giving them a platform to jointly decide on tax policies. 

Composition and Governance Structure 

• The GST Council's composition reflects a carefully calibrated balance between central authority and state representation. The Union Finance Minister serves as the Chairperson, ensuring federal leadership, while the Union Minister of State for Revenue or Finance provides additional central representation.  
• The inclusion of Finance Ministers or nominated representatives from each state ensures that regional perspectives are adequately represented in the decision-making process. 
• A particularly innovative feature is the provision for states to collectively choose a Vice-Chairperson from among themselves, fostering inter-state cooperation and providing states with a leadership role within the Council. This democratic element within the federal structure demonstrates the Constitution's commitment to collaborative federalism. 
• The quorum requirement of one-half of the total members ensures meaningful participation, while the three-fourths weighted majority requirement for decisions creates a high threshold that necessitates broad consensus. The weighted voting system, where the Centre holds one-third weightage and states collectively hold two-thirds, reflects the federal principle while ensuring that no single entity can unilaterally impose decisions. 

Powers and Functional Mandate 

• Article 279A vests the GST Council with extensive recommendatory powers that span the entire spectrum of goods and services taxation.  
• The Council's mandate includes determining which existing taxes should be subsumed under GST, defining the scope of goods and services subject to taxation, and establishing model GST laws that serve as templates for both Union and State legislation. 
• The provision for recommending threshold limits below which businesses may be exempted from GST demonstrates sensitivity to small enterprises and the informal economy.  
• Similarly, the authority to recommend different rates, including floor rates with bands, provides flexibility to address varying economic conditions and policy objectives. 
• Notably, the Council possesses special powers to recommend additional rates during natural calamities or disasters, showcasing the Constitution's responsiveness to emergency situations.  
• The specific mention of special provisions for northeastern and hill states reflects constitutional recognition of regional disparities and the need for differentiated approaches. 
• The Council's role in determining the taxation timeline for petroleum products underscores its strategic importance in energy policy and revenue generation. This provision allows for gradual integration of critical sectors into the GST framework while maintaining fiscal stability. 

Conclusion 

Article 279A represents a constitutional innovation that has successfully transformed India's indirect tax landscape through cooperative federalism. The GST Council's weighted voting system and consensus-building approach have proven effective in navigating complex federal-state dynamics while ensuring harmonized taxation. The comprehensive institutional framework, including dispute resolution mechanisms, demonstrates the Constitution's evolution in response to contemporary governance challenges. This landmark provision establishes the GST Council as a model for federal cooperation in policy-making domains.