Calculation of “net proceeds”, etc
Article 279 — Calculation of “net proceeds”, etc
provisions of this Chapter, “net proceeds” means in relation to any tax or duty the proceeds thereof reduced by the cost of collection, and for the purposes of those provisions the net proceeds of any tax or duty, or of any part of any tax or duty, in or attributable to any area shall be ascertained and certified by the Comptroller and Auditor-General of India, whose certificate shall be final. (2) Subject as aforesaid, and to any other express provision of this Chapter, a law made by Parliament or an order of the President may, in any case where under this Part the proceeds of any duty or tax are, or may be, assigned to any State, provide for the manner in which the proceeds are to be calculated, for the time from or at which and the manner in which any payments are to be made, for the making of adjustments between one financial year and another, and for any other incidental or ancillary matters.
279A. Goods and Services Tax Council.—(1) The President shall, within sixty days from the date of commencement of the Constitution (One Hundred and First Amendment) Act, 2016, by order, constitute a Council to be called the Goods and Services Tax Council. (2) The Goods and Services Tax Council shall consist of the following members, namely:—
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(a) the Union Finance Minister — Chairperson;
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(b) the Union Minister of State in charge of Revenue or Finance — Member;
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(c) the Minister in charge of Finance or Taxation or any other Minister nominated by each State Government — Members. (3) The Members of the Goods and Services Tax Council referred to in sub-clause (c) of clause (2) shall, as soon as may be, choose one amongst themselves to be the Vice-Chairperson of the Council for such period as they may decide. (4) The Goods and Services Tax Council shall make recommendations to the Union and the States on—
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(a) the taxes, cesses and surcharges levied by the Union, the States and the local bodies which may be subsumed in the goods and services tax;
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(b) the goods and services that may be subjected to, or exempted from, the goods and services tax;
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(c) model Goods and Services Tax Laws, principles of levy, apportionment of Goods and Services Tax levied on supplies in the course of inter-State trade or commerce under article 269A and the principles that govern the place of supply;
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(d) the threshold limit of turnover below which goods and services may be exempted from goods and services tax;
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(e) the rates including floor rates with bands of goods and services tax;
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(f) any special rate or rates for a specified period, to raise additional resources during any natural calamity or disaster;
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(g) special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and
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(h) any other matter relating to the goods and services tax, as the Council may decide. (5) The Goods and Services Tax Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel. (6) While discharging the functions conferred by this article, the Goods and Services Tax Council shall be guided by the need for a harmonised structure of goods and services tax and for the development of a harmonised national market for goods and services. (7) One-half of the total number of Members of the Goods and Services Tax Council shall constitute the quorum at its meetings. (8) The Goods and Services Tax Council shall determine the procedure in the performance of its functions. (9) Every decision of the Goods and Services Tax Council shall be taken at a meeting, by a majority of not less than three-fourths of the weighted votes of the members present and voting, in accordance with the following principles, namely:—
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(a) the vote of the Central Government shall have a weightage of one-third of the total votes cast; and
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(b) the votes of all the State Governments taken together shall have a weightage of two-thirds of the total votes cast, in that meeting. (10) No act or proceedings of the Goods and Services Tax Council shall be invalid merely by reason of—
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(a) any vacancy in, or any defect in, the constitution of the Council; or
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(b) any defect in the appointment of a person as a Member of the Council; or
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(c) any procedural irregularity of the Council not affecting the merits of the case. (11) The Goods and Services Tax Council shall establish a mechanism to adjudicate any dispute—
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(a) between the Government of India and one or more States; or
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(b) between the Government of India and any State or States on one side and one or more other States on the other side; or
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(c) between two or more States, arising out of the recommendations of the Council or implementation thereof.]
Plain English Summary
This article deals with how the actual money collected from taxes or duties ("net proceeds") is calculated by subtracting the costs of collecting them. It also establishes a council to recommend changes related to Goods and Services Tax (GST) laws across the Union and States.
Key Points
- Net Proceeds Calculation: "Net proceeds" means the total amount of tax or duty collected minus the expenses incurred in collecting that tax.
- Certification: The Comptroller and Auditor-General of India certifies the net proceeds, and this certificate is final.
- Flexibility in Calculation: Parliament or the President can make laws to specify how proceeds are calculated, when payments are made, and how adjustments between financial years are handled.
- GST Council: A Goods and Services Tax Council has been constituted by the President to recommend on GST taxes, goods/services covered, and model laws.
Why It Matters
This article ensures transparency in how tax revenue is accounted for and provides a formal mechanism (the GST Council) to harmonize tax laws across different levels of government regarding sales tax.
Landmark Judgements
No major landmark judgements.