MASTER CLASS ON GST Rahul Tiwari Sir

[00:00:17]and function.

[00:00:18]>> Okay. Structure and function of just a concept. First heading right there.

[00:00:27]Constitutional provision. Constitutional provision related to goods and services tax council. Constitutional provisions related to goods and services tax GST council.

[00:00:45]Number one, 279 A clause one. 279 A capital A clause one. 279 A clause one. Right. The president shall the president shall within 60 days from the date 60 days from [snorts] the date of commencement.

[00:01:12]60 days from the date of commencement of the Constitutional Amendment Act [cough] 101. Constitutional Amendment Act 101.

[00:01:38]By order. By order constitute by order constitute a council.

[00:01:50]A council to be called as GST council.

[00:01:59]GST council and accordingly council was created and accordingly council was created by presidential order on 15th of September.

[00:02:24]15th of September 2016.

[00:02:30]15th of September 2016. So who came first? GST came into existence came first or GST council?

[00:02:38]>> Huh?

[00:02:40]>> Council came first. GST act came first.

[00:02:43]GST implemented from 1st July 2017. GST act have enabled the establishment of what? GST council. So understand very important difference here. Law is being made and law is being implemented. So law can be made on any date. But when it is going to get an ascent from the president what usually we understand when president have given ascent to any law. Fine. So law came into in existence. Fine. law is going to be enforcable by the date when it is going to be published in gadget of India. So suppose Kalangana government have made a law and according to the law those people who are not following the traffic rule minimum chalan is going to be 10,000 rupees law is being made but that law will be implemented on that date when it is going to be published in the gadget of state till then it will be not implemented.

[00:03:55]So law is there, law is enforcable.

[00:04:00]Usually what happened when the law is being made, it is also enforcable. Means president have signed that and it is also published in the gadget of India.

[00:04:12]Law made law implemented from the next day. Suppose law have made today it went to the president and president have signed on the date. What is date today?

[00:04:22]>> 19th of June. Fine. So 19th of June law came into existence but this law will be enforcable only on that date when it is going to be published in the gadget of India because if you have not published in the gadget of India why see when you publish the gadget of India it is an official word by the government this law is in existence and the provisions of this law is enforcable. So law is there.

[00:04:56]Law is enforcable. Law is there. When legislature pass that law, president sign on it, it become law.

[00:05:07]Till then it is in the legislature, it is a bill. The moment got the sign, it is called as an act. And that act is going to be enforcable from that date when it is going to be find a place in gadget of government of India or gadget of state government till then it is not enforcable the moment it is going to get assigned and published in the gadget of India. So two steps law is there. Yes.

[00:05:36]Why? because present have given the S&P law is enforcable only when when it is going to publish at where >> gas of India. So GST law was passed in 2016. Fine law is being passed and as per the law there should be a GST council. So law said that there should be a GST council. So when the law is there and law said that there's a GST council. So you have created a GST council but the implementation of the GST is going to happen only when when it is going to published at where >> guest of India. So that was formally celebrated on the midnight of 30th of June or 1st July 2017 at the central hall the second terrest of the destiny. So that ceremony was actually you are going to push a button by that it is going to be published in where gadget of India and accordingly it will be implemented from that date.

[00:06:36]Understood? So GST law came first then GST council came and then GST was implemented from 1st July 2017.

[00:06:48]Clear? Write further. Now write clause 2. 279 A clause 2. Article 279A clause 2. Right.

[00:07:01]It is about composition of GST council.

[00:07:06]Composition of GST council.

[00:07:15]Right. Council shall consist of Council shall consist of a Union Finance Minister as chairperson.

[00:07:29]You can write in the points.

[00:07:32]Union Finance Minister as chairperson.

[00:07:37]Second, a Union Minister of State. A Union Minister of State.

[00:07:46]Underline this. Minister of State.

[00:07:49]Minister of State. Underline this word.

[00:07:51]Union Minister of State. In charge of revenue or finance?

[00:07:58]In charge of revenue or finance?

[00:08:05]As a member of GST Council. as a member of GST council.

[00:08:12]Next, minister in charge of Minister in charge of finance.

[00:08:23]Finance or taxation.

[00:08:29]Finance or taxation.

[00:08:33]Or any other minister.

[00:08:36]Finance or taxation or any other minister nominated by Nominated by state government. Nominated by state government as a member of GST council.

[00:09:15]Fine. So see GST [clears throat] council have two people coming from where? Union and rest of the people are coming from where? States. So what is the meaning of state minister?

[00:09:29]Who is a state minister?

[00:09:33]State.

[00:09:34]>> H.

[00:09:38]>> Who's a state minister?

[00:09:39]>> Who's in the cabinet?

[00:09:42]>> Who is the state minister?

[00:09:47][cough and clears throat] >> Cabinet Minister Minister, State Minister, Minister with Independent Charge. Do you know the difference? [snorts] Do you know the difference? Yes or no?

[00:10:27]If yes, answer my question. If no, then I'll explain.

[00:10:32]You do not know. See, there are certain very important ministries which need to be consulted in majority of the decision of the government of India or state government. For example, finance, defense, fine. Home, finance, defense, home, external affairs. Fine. So these are certain important ministries whose say in any decision is required. Fine.

[00:10:58]So suppose you are going to take a decision on what? You are going to take a decision on trade matter. So here the opinion of finance ministry though trade relation is a part of foreign relation but here trade deal need to be briefed and the inputs are required from commerce ministry. Inputs are required from the home ministry. inputs are required from the finance ministry. So here decision cannot be taken only by whom? External affairs ministry. Fine.

[00:11:27]So when the collective decisions are being made, certain ministries are always inevitable. Their views and opinions are required every time. So those ministry are important ministry and their ministers are being given the rank of cabinet. So cabinet is a rank which shows you are heading a top most important ministry from the point of view of government of India. Second whenever cabinet will meet all the cabinet ministers are invited automatically.

[00:12:06]So usually cabinet meeting happens every week. Fine. So once the cabinet meeting will be held, you need not a separate invitation. You will be directly reached there. And who are the cabinet ministers? Who are heading important portfolios in the ministry of government of India. Example home ministry, defense ministry, external affairs ministry, commerce ministry. All these ministries are what? Important ministries. Fine. So this so they are what? They are cabinet minister. Then they are ministers. Fine.

[00:12:41]So suppose you are heading a ministry which is not considered as a very important ministry minds and minerals. Fine. Or you are heading environment ministry. Fine. Or you are heading any ministry Kaplan mantra. Fine. So leather and other things. So you are not heading important ministry like the most important ministry then you will be regarded as a minister.

[00:13:08]Fine. Sometimes fine do you understand?

[00:13:15]Maybe you are heading a small department kind of the thing but it is what? It is of immense important.

[00:13:24]Fine. So it is of immense important. For example, there is a ministry for looking for energy. Fine. Petroleum ministry is there. Coal ministry is there. Now atomic energy. Fine. Atomic [clears throat] energy is small but having immense importance. So when some departments or ministry fine. So if it is a bigger one they will called it as a ministry.

[00:13:54]Fine. And if it is small sub sub part of this that will be called as department.

[00:14:02]Now when you are stuck in between it cannot be classically called as a department neither it can be defined as a ministry but having immense important then what will come ministry with independent charge ministry with independent charge what it means that just you'll understand first again come to the cabinet ministry they are normal ministry or most important ministries Most important ministries their work is easy or heavy work?

[00:14:37]>> Heavy work. So minister need assistance.

[00:14:41]Why? Because these ministries are having multiple departments. For example, ministry of finance. So ministry of finance have revenue department, expenditure department, PSU department, then deep is there, department of uh in disinvestments and other things. So there are multiple heads, six heads in the finance ministry. All heads of the finance ministry cannot be taken by one minister only. So you need certain people who can assist to whom? The cabinet minister. And then comes who?

[00:15:15]>> State minister. So state minister report who?

[00:15:19]>> Minister.

[00:15:19]>> Cabinet minister. Cabinet minister reports who?

[00:15:23]>> Prime Minister. Minister will report who? Prime Minister. Minister with independent charge report who prime minister. So see if you are very important person of your party and your party win the election. So either you will become PM if you will not become PM then what you will become? Cabinet Minister Rajnat Singh. Fine. Then Amit Shaji all these people are what? The most important people and they are having what portfolio? Cabinet portfolio. Then those who are not as important like them but they have played a significant role they will be made home.

[00:16:06]Fine. Those who are in the ladder they have shown leadership skill but they are young they need to learn more. They will get what?

[00:16:19]Then the dark horse. Those who are relatively young but they have shown lot of potential to for administration and the party they are being rewarded with what minister with independent charge and sometimes like atomic energy commission all these things ministry of personnel fine so all they are with what independent charge and they report directly to whom >> PM but remember that when the cabinet meets only who is invited By default, by default who is invited?

[00:16:54]Cabinet minister. Rest of them you will get invitation only then you can go otherwise it is not required to be part of cabinet meeting. Fine. So cabinet is going to meet means cabinet is going to take important decisions. Now these days further classification is being there.

[00:17:14]Fine. Cabinet committee on economic affairs. Cabinet committee on political affairs. Cabinet Committee on Defense.

[00:17:23]So for example, Cabinet Committee on Political Affairs. So Cabinet Committee on Political Affairs. So in the cabinet there are certain ministers who are part of Cabinet Committee on Political Affairs. So only they are going to be there when which committee will sit?

[00:17:41]Cabinet Committee on Political Affairs.

[00:17:44]Usually the most powerful cabinet committee that is cabinet committee on political affairs and usually when cabinet committee meeting happens usually it is headed by whom? Prime Minister. If prime minister is absent because he went outside the country and cabinet is meeting then the senior most minister is going to head that cabinet meeting. For example when PM went outside Mr. Mr. Rajna Singh the defense minister he is considered as the most senior minister in the present government. So he heads the cabinet committee. Understood? Cabinet committee on defense. Cabinet committee on finance. Fine. So finance headed by finance minister but by default if the prime minister is there in the meeting then it is automatically chaired by whom? Prime Minister. Fine understood this? Are you clear? So in the GST council union finance minister will be there and state minister with what portfolio finance portfolio to state minister what designate with which ministry you are attached. So if I'll say state minister of state minister of foreign affairs means you are a junior minister attached with which ministry?

[00:19:03]>> Foreign affairs ministry. If you are minister of state in the finance ministry means you are a junior minister in which ministry?

[00:19:12]>> Finance.

[00:19:13]>> Finance ministry. So state minister is basically a junior minister in a big ministry where the work is heavy huge and the minister need assistance and usually these are those ministries which already [clears throat] have cabinet ranked portfolio. Understood? So in the GST council in the GST council union is represented by two people finance minister and state minister finance ministry portfolio finance portfolio and as I said that there are six departments in where ministry of finance six department they do have and in that revenue what you have wrote revenue venue or taxation finance. Fine. So revenue and finance portfolio who is heading that portfolio. See as of right now we have two state minister and the finance ministry. So the minister who is state minister and heading which department?

[00:20:19]Revenue department. He is going to represent union in the GST council along with whom? Finance minister. Now with respect to the states, states in the states, majority of the states usually what happened the chief minister usually hold the portfolio of finance with himself. In the majority of the case, minister, chief minister hold the finance portfolio with himself but either chief minister can directly go to the meeting but chief minister usually do not go because he's also very busy man. So chief minister of the state can appoint a person to represent the state in what GST council. So whenever the government will form in the state, government of the state is going to get a notice from the GST council key who is going to be your representative to represent the state in the GST council and accordingly state secretary reply to the government of India GST council.

[00:21:22]This person is a designated person to represent who? Represent to the state in the GST council. Understood? Now what about the union territories? Union territories with legislature. Union territories with legislature. And if there is a legislature, there is a chief minister. So now these territories, union territories who have their legislature, they can appoint their person to represent who that state or union territory in the GST council Delhi, Purucheri and Jammu and Kashmir.

[00:21:58]So they can appoint a person who can represent these union territories at where GST council. Those union territories who do not have an assembly they are represented by whom? Union government. Understood the structure. So structure works in this way. Union territories are being represented in the district council. Answer is partially yes. Why partially yes? Because those union territories which are having state legislature they can present directly whereas other union territories are being presented with the union. These days questions are going to be more and more not only just a knowledge but rationality and logic also. So you should not see the statement only from the point of view of knowledge point of view. You have to check the rationality of the statement and logicality of the statement. So the statement is saying that all duties are being presented in the GST council. Statement is correct or statement is incorrect?

[00:23:02]All duties are being represented in the GST council. Statement is correct or statement is incorrect?

[00:23:09]>> Statement is correct.

[00:23:11]Because logic see the logic your logic is sir only those UTS which are having a legislature they are being presented by whom they are representative in the GST council true and that is why the statement is correct but I am saying that those union territories who have legislature they are being represented by their representative whereas the other union territories are represented through who center.

[00:23:39]So my logic is more stronger than your logic. As for the statement, as for the statement, if the statement is going to say that every union territory is represented by their representative in the GST council, then statement is what?

[00:23:55]Incorrect. But exam pressure anxiety then exam pressure anxiety and you saw certain question which you have read which you know and then Hindi you become very happy and you are yes I brought the question [laughter] GST council I have studied that now question came in the exam you are very happy and you lose the focus this is what UPSC play with you every year difficult question if they're going to put very difficult question just to create more anxiety in you fine so anxiety level exam it reach here here and you saw first few questions it reach here once it reach here you are out of control instinct worker now your instinct works over your mental consciousness So people go in the fatigue in the exam.

[00:24:59]They are not able to see certain things which are very visible immediately after that 2 hour magic.

[00:25:06]After 2 hours public will come and say that why because you are in that pressure to understand this game of the UPSC. They are going to play a mind game. It is not only the test of your knowledge. It is a test of your temperament, your hold the breathe for that two hours. Control your emotions. Do not think too much. Be like a machine. What I always say to you, be like a machine. Don't have emotions in your mind. M selection.

[00:25:42]If I will get selected, this will happen. If I will not get selected, this will happen. Nothing will happen. 100 questions. Each questions are having four options and I have to hit the right option. That is my job and I am not worried about anything else. Go to hell everything I have trained my mind in such a way 100 questions 400 options 100 correct options fine questions if it is too difficult leave it question is approachable take it attempt it go ahead next question if question is creating doubt I'm able to eliminate two options I will put this question for the second round 100 questions 20 question will bouncer which is going to create too much pressure I will be not bothered with that so 20 question so I saw the first question very difficult one I'm counting question number two very difficult two third question very difficult three so if the counting reached to 20 and you are at somewhere around question number 80 90 you understood question paper this time is slightly difficult so even if you are going to maintain good accuracy you are going to be rewarded with your selection. If you counted 17 18 only difficult fine and almost you reach 100 questions or you reach 100 question only 15 16 are looking difficult question paper is easy you have to take a little bit more risk in order to get more marks in order to be in the cutff because cutff is trying to be little bit higher to you calculation mind fine so this calculation you have to run with your knowledge no other things so if you're calculatively correct you can go through maze is a different ball game.

[00:27:33]Maze is a different ball game. Here you know that the question will be coming from this this area and this is the way how I have to address. So what should be the approach with respect to the solve political issues. So in the political issues the involvement of the public involvement of the government and civil society with judicial assistance. But if it is an economic issue is judiciary in the position rarely. If it is an economic issue it is an issue between whom? Public as well as whom?

[00:28:06]Government. So judiciary is not in the picture. So I will not put judiciary in my mind when I'm going to deal with what matter economic matter. If it is a society more and more thing in the hand of whom? Society assisted by whom?

[00:28:20]Government and then whom? Judiciary.

[00:28:22][clears throat] But in polity it is government, legislature which take the center stage and it may along with who? It may along with judiciary. Public is going to be in the third position. Society public is the third position. Government in the second position and judiciary in the third position. So this is you have to adjust your alignment when you are dealing with the paper or particular subject. So economics what we have to do in economics just means government policy data that is a center stage do not be worried about what public think public thinks let them think because public have wishes and economy runs on demand. So understand this do not be go in such rthorics. Sometimes what happened in the newspaper they are writing their opinion and when you see the opinion and you found that these opinions are little bit more demanding from the government. You are demanding too much from the government. So it is not a demand. It is actually what wish of that person who wrote that article and majority of the time it happens in the Hindu.

[00:29:32]So the Hindus article are more of a wish and they present as a demand and that is why these articles sometimes get little bit not being appropriate for the read.

[00:29:46]But some articles are very good. Why?

[00:29:48]Because they provide proper reason and logic for that. I am making this demand for this purpose that need to be read and underlined or you can save that article also. Understood? So GST council three type of the representation one is by the union second is by the state third is by whom? UDS but here union and state means when it is about the voting power voting power is decided between these two representation is of union state and UT's with legislature but when it is about voting it is union and all these considered as a state and simple formula 1/3 is with whom?

[00:30:39]>> Union. So, write it there. But first complete this 279. Clause 3 also.

[00:30:48]Right.

[00:30:49][clears throat] Clause four. Right.

[00:30:50]Clause 4. 279. After second, clause four. Third is not very important. You can ignore it. Clause four. Scope of recommendation.

[00:31:03]Clause fourth. 279A.

[00:31:05]279 A clause 4 A is important just not 279 279 A for apple fine 279 A clause 4 and subheading is scope of recommendation it's very important that's why I'm emphasizing scope of recommendation because again it become a quality matter and apart from the parliament and executive who came into the picture judiciary came into the picture so sometimes It is said that there is always an elephant in the room and in Indian context it is judiciary is considered as an elephant in the room.

[00:31:45]Elephant in the room not in the negative sense. Elephant in the room means you should not ignore. There is something big in the house which cannot be ignored. If elephant in the forest it might be not visible properly but if elephant in the room it is thoroughly visible. In fact, nothing will be visible. Only what will be visible?

[00:32:06]Elephant will be visible. Fine. So, whenever we want to highlight something which is usually not being addressed while addressing particular issue and you are ignoring very important aspect then we use the word what?

[00:32:21]>> Elephant [laughter] in the house. So this clause is very important in this context. Right? The goods and services tax council the GST council shall make recommendations.

[00:32:32]The GST council shall make recommendations to the union.

[00:32:38]To the union and the states, union and the states on states on what matters right in the list.

[00:32:55]Union and states on. So GST council can give a recommendation to whom? Both union as well as state. Now right number one the taxes sis and searchcharge.

[00:33:08]The taxes sis and search charges that to be subsum or subsumed whatever you want to listen fine subsumed in GST. So all those taxes which are being included in what? GST.

[00:33:27]Fine. So on that who can make a recommendation?

[00:33:31]GST council can make a recommendation.

[00:33:34]Fine. Number two, goods and services tax. Goods and services, not tax. Goods and services that may be subjected Goods and services that may be subjected subjected to subjected to or exempted subjected to or exempted from GST.

[00:34:02]subjected to or exempted from GST.

[00:34:08]Fine. So, anything can be in the GST.

[00:34:11]Anything should be exempted from the GST. Who will give a recommendation?

[00:34:15]>> GST council. Third, model GST laws.

[00:34:20]Model GST laws model GST laws comma principles of levy principles of levy how to impose it fine principles of levy comma implementation of IGST Comma principles governing place of supply.

[00:34:56]Principles governing place of supply.

[00:35:05]Fine. What is model law?

[00:35:08]Here the word is starts with the model GST law. What is model law?

[00:35:14]something like a draft.

[00:35:16]>> Something like a draft then it should be called as a draft law. It should not be called as a model law used by >> huh laws that will be used by >> see uh it is better to understand with an example agriculture is a union subject or state subject. state subject but [snorts] union want a law which is going to be good for every state and states can be benefited by a law which is made by whom center so government of India recognize the agriculture though it's a state subject but government of India also have a subsequent or enough interest in the agriculture of the country and union believe that Such law should be implemented throughout the country in a uniform way. Why in uniform way? Because every state can make their own law related to agriculture. So union want that particular kind of the law should be implemented in every part of the country. For example, land acquisition.

[00:36:28]So land acquisition should be have a uniform policy. The compensation should be at least minimum this should be implemented everywhere. So rather than going to ask each and every state union have made one law in the name of model law. So that model law is going to provide a framework for the state to implement their own law with respect to what with respect to the land leasing or land acquisition whatever. So those areas where union usually do not have a power to legislate fine but they want war want a uniform law should be implemented through the states then they create a model law. So a model law is a kind of a template for you to make certain laws in your area and if you want certain changes you can make certain changes but basically it is going to be on this basis. Is model law is enforcable on the state? Answer is no. State have still full discretion whether they accept it as it is or they reject also as it is or they can implement that model law by making certain changes. Okay. So this is called model law. Understood? And when we go to the agriculture chapter we are going to see majority of the law made by the government they are what? Model laws.

[00:37:56]Okay. Right. Further, the threshold limit The threshold limit of turnover the threshold limit of turnover below which GST exemption may apply. The threshold limit of turnover below which GST exemption may apply.

[00:38:27]So like we do have a system key your income is going to be threshold only when you will only then you will come under the taxation. So if your income is 4 lak 5 lakh rupees you do not belong to any income tax regime after particular threshold you will belong the income tax regime. So who decide this in the case of income tax? In the case of income tax it is union government decide key person having 8 lak rupees or up to 8 lakh rupees will be exempted from the income tax or person with 10 lakh rupees will be exempted from the income tax or person with five lakh rupees will be exempted from income tax. Similarly to what amount the turnover is being there then you will be exempted from GST. For example, earlier a person who is having up to 48 lakh rupees income. Of course, government of India is not going to give any person as a 48 lakh res income.

[00:39:19]Fine. So if you are an consultant, you are working in a firm. Fine. You are working in a firm. Now you are working in a firm in two possible ways. Suppose you are a regular employee. Fine. You are a regular employee and you are getting the monthly salary. Then your TDS will be deducted. Fine. But you are running your own firm advisory firm and this advisory firm advises this company and you are charging for your consultancy. So you have an agreement with that company. Fine. You are having your own consultancy firm and that consultancy firm of yours is approached by that company and company said that we want your consultancy and you said that the monthly charges will be 10 lakh rupees. Company agreed and they have signed 10 month contract. Contract value reached to how much? 1 cr. And this is a transaction between company and consultancy. They have not hired you as an employer but they have hired you as a consultant. So if they have hired you as a consultant, fine. If they have hired you as a consultant, of course they will pay you while cutting the TDS. But because it's a company and they are going to earn how much? 1 cr from that company. So company will pay how much?

[00:40:34]10 10 lakh rupees per month. So 10 months how much you are going to get? 1 cr fine 1 cr. So if you are going to get 1 cr suppose law says that after 2 crores you have to go for GST. Before 2 crores you should not go for the GST regime. So you need not to file the GST.

[00:40:54]I'm just giving example. It's not a real example. I'm giving example. So you need not to go for the GST. But if your threshold is going to cross how much 2 crores then you have to go for proper filing of the GST. Now government have changed the law. Government said that any firm above 50 lak rupees they have to go for what process GST process. And who will tell that? Who will tell this?

[00:41:21]>> GST council. This is what I just want to let you know on what money on what level you have to go under the GST regime or without GST regime. It is decided by whom?

[00:41:33]>> GST council. Fine. Write for the rate including flow rate.

[00:41:44]the rates including flow rates with bands of GST. With bands of GST means on these these goods, this will be the GST rate. On these these goods, this will be the GST rate. Fine. And with GST rate sess will be applied or not. All these things is going to be told by whom? Just council. Right. Next.

[00:42:16]Any special rate.

[00:42:19]Any special rate or rates or rates for a specific time period. any special rate or rates for specific time period to raise to raise additional resources.

[00:42:44]additional resources during during natural calamity during natural [clears throat] calamity or disaster.

[00:43:01]So if the statement says that GST council is empowered to impose even temporary taxes in addition of GST statement is correct or incorrect?

[00:43:15]>> GST council is empowered to recommend additional taxes apart from the GST.

[00:43:24]Statement is correct or incorrect?

[00:43:27]>> Huh?

[00:43:28]>> Correct or incorrect? Answer is correct.

[00:43:32]Why correct? Because statement read the statement. What statement says that?

[00:43:37]>> Any special rate or rates for specific period. So where it is said specific period that means it is allowing to go for only temporary phase. What I said that do not just read the statement. Try to understand the emotions of the UPSC behind the statement. UPSC emotions emotions use block your emotions but understand whose emotions UPSC is emotion. Now here when it is being see law is always interpretative in the nature.

[00:44:15]Law is not something which is going to be as text. Law is something have an interpretation and here you make mistakes.

[00:44:26]You go by the common man's reasoning.

[00:44:28]You should go by the logical reasoning, law based reasoning. What interpretation it should have? Statements, questions should be read with this mindset. They example see the example statement says that any special rate or rates for a specific period time period specific time period so when it says that rates for specific time period it's showing the permanent rate or temporary rates >> temporary rates so I will replace this statement where I am saying that for specific time period I will replace this and I will mention what word temporary That statement is still correct. Fine.

[00:45:12]Because the interpretation of temporary in this context and the special rate for specific time period have the same meaning. In other context they may not have the same meaning. Temporary is not having the same meaning but in this context it is giving a clearcut same meaning. So accordingly we have to go for it. Understood? So GST council is empowered to suggest certain additional taxes in with along with what GST for temporary phase answer or the statement is correct statement right next to >> I'll come to that point I'll come to that point this is why I am dictating this point now the entire reason for whether it is being enforcable on the state or not that is a one separate matter and that matter become big matter fine. So usually it is called matter. So it become a big matter fine and it is actually opened a Pandora's box which we are going to open just in few minutes.

[00:46:19]Write the next point first.

[00:46:21]Special provision.

[00:46:23]Special provision with respect to Special Provision with respect to certain special category states special provision with respect to certain special category states.

[00:46:48]So acha before moving ahead I forgot to send two documents fine today early morning I got the dream I have to send you so I have prepared the document in early morning at 4:30 I have prepared those two documents one was cooperative federalism versus competitive federalism one that I will send you the document not in the answer format entry number 50 minerals right and MMDR and cooperative ative federalism this I'm going to send in the question answer format so I'll send you two document today by go what after this class lunch then I will be back then I'll send so before 5:00 p.m.

[00:47:29]You are going to get this two documents in your WhatsApp group. Not Telegram.

[00:47:33]Fine. Telegram is banned by government of India. Telegram story is something like that. It haunted government of India which is being haunted to coaching industry for a long time. Coaching industry not only civil services coaching industry. Majority of the coaching industries are facing one matter. What their intellectual property videos are being illegally distributed on telegram. Multiple times they said to the government of India please do something. Government of India said that okay we will try we will do something we will do something. Now when the government of India's question paper is leaked on the telegram then government realized there is a big big issue at where? Telegram. Fine. Now today government of India has submitted it statement to Delhi High Court. Telegram is working like a dark web.

[00:48:21]UPSC is also listening. They're also reading the newspaper. So they are interested in multiple things. Under what section government of India can impose a ban on whom? Not on social media. Which law? Which provision?

[00:48:38]Which law? Which provision?

[00:48:41]Civil.

[00:48:48]Too much noise is happening for past four days. All these news channels are doing this.

[00:48:55]And you are completely ignoring this matter.

[00:49:05]I will share the document today. Proper presentation.

[00:49:11]I have made one presentation proper presentation step by step. Read it and have it. So I will send three documents to you. One is telegram matter. What is actually telegram matter? Fine. Second is cooperative federalism process competitive federalism with examples and data. Then third is entry number 50 minerals right act and what mmdr and cooperative federalism or centers rule.

[00:49:39]Fine. So these are things but please pay attention.

[00:49:43]Please pay attention what is happening right now in the newspaper. Even if you are not going to go deep inside but at least have an awareness read consciously. If you read two three times you will get that exam in exam you are going to have a see I told you short-term memory and long-term memory if you read something again and again it will already going to store in the long-term memory long-term memory usually we do not able to recall any time but when we get a clue fine when we get the clue cosmop Fine. So it is called clue. So in the exam when you see the certain words you get the clue and immediately you can recall your long-term memory. So this is why even you are not able to remember everything still read it. If you're not able to remember everything do not worry. See many of you who are not reading the newspaper because you have this uh fear if I'll read I'll not able to remember and recall but the idea is if you'll read multiple times you will able to recall yeah you will able to recall tried and tested here so please read at least important news you should read for a morning batch the new batch what I have just told them do one thing go for first again not for the promotion of my video for your information newspaper session I have taken and I have told that there are three type of the news three type of the news one is on which you have to make notes second which you have to write in one line third only data remove so if you'll go by that you can have only maximum to maximum 15 articles of the newspaper only 15 articles of the newspaper and that 15 article only three four articles are those articles where you have to write otherwise just read the heading and one or two data not more than three lines. So if you are going to underline 16 news fine you find 16. So maximum four are going to where you have to write five five points. How many points?

[00:52:02]Four multiplied by five 20 how much remaining 12 news and in that 12 news somewhere around 6 to 8 news will be there where you have to write two to three points only. So you are not going to make more than two pages newspaper along with the newspaper. So maximum 1 and a half hour and 2 hours you have to spend but that is really going to work to consolidate your knowledge and cross utilization of the knowledge and recalling the important data facts committee commissions all these things in one go main. If you want to get a good marks in the maze, you have to build this thing today itself.

[00:52:41]And there is no tomorrow. There is always today or there is always yesterday. Fine. Majority of the people go for what? Yesterday. But you have to start today. Suppose if you are not able to do it the complete newspaper at least try for the half gradually start today.

[00:53:02]Do one work main page.

[00:53:05]This week one page page number one and any other page which you like except sports page any page one is a main page and any other page two pages for next two weeks one week then gradually go for three to four pages fine then by the August if you are able to reach the full newspaper it's good for you for the next prelims exam Because August is a time from where the news can be picked by usually UPSC August start but if you start in August page number one you will start with the page number entire newspaper by November December or January by that time UPSC will say that bye-bye tata ga fine so please do that work telegram issue is very important issue with respect to DPDC Okay, [laughter] I'll send you now.

[00:54:05]Right. Last point in this any other matter any other matter relating to GST.

[00:54:12]Any other matter relating to GST as the council may decide as the council may decide at the council may decide.

[00:54:31]Now write one more.

[00:54:34]Article 279 A clause 9. Article 279 A clause 9 voting mechanism.

[00:54:48]Voting mechanism.

[00:54:52]Right. Every decision of GST council, Every decision of GST council shall be taken.

[00:55:08]At a meeting.

[00:55:12]At a meeting.

[00:55:15]By a majority.

[00:55:19]by a majority of not less than not less than 3/4 not less than 3/4 vaged votes vaged votes underline it waged votes of the members of the members present and voting of the members present and voting.

[00:55:58]So online voting is not allowed. You have to present to vote. Fine. Present and voting is required. Online voting is not allowed. Okay. Now write further present and moting in accordance to in accordance to following principle. In accordance to following principle.

[00:56:25]What principle? Point number one. The vote of the central government.

[00:56:32]The vote of the central government have the vote of the central government shall have not have just shall have shall have wage of shall have wage of one/ird vage of one/ird of total vote cast votes casted total votes casted Fine. Second, the votes of all state government the votes of all state government taken together taken together shall have weightage of wage of 2/3 23 of total Votes casted.

[00:57:46]Fine.

[00:57:48]So one/3 belongs to who?

[00:57:52]>> Center. 23 belongs to who?

[00:57:55]>> States. Fine. So 2/3 votes belongs to whom? 23 votes belongs to >> state. But one more thing which you need to write despite having 23 vote the vage right right there in GST council in GST council at the time of voting at the time of voting Cent's voting percentage centers voting percentage is 33.33 and states wage is 66.67's wage is 66.67 67 divided equally among all states 66.67 67 divided equally among all states.

[00:59:14]And for decision making And for decision making 3/4 3/4 [snorts] that is 75%.

[00:59:28]3/4 that is 75% of total waged vote.

[00:59:35]75% of total vaged vote casted is required means without centers vote means without centers vote no decision Without centers vote no decision can be taken [cough] by GST council.

[01:00:24]Okay. So combinedly state have 66.67 67 but center vote is very important because until unless center will vote in that favor it cannot be taken but something very incredible happens in the GST council from very its first meeting constitution and law says that voting and decisions will be made through what vittage voting and that vaged voting to take a decision what is required to take a decision what is required Third the 75% vote is required. So if you have center in your side and certain states are opposing usually not I'll not say usually I'll say generally certain states have certain issues and especially this happen when the center and the state is ruled by opposition parties. Fine. In center one party is there and the opposition party is ruling in the other state. And now here you are not only having economic differences but ideological differences and ideological differences also bring the economic differences. How you are approaching for particular thing. Fine. So that approach depends upon your political ideology.

[01:01:47]What political ideology you follow? So centrist ideology or center right center left. So majority of the political parties are in India they are either centrist party or they are leftist. No they are center left center right. So in India there is nothing like extreme left extreme right. Majority of the Indian political parties they are of what nature? Either centrist or they are center left or center right. So it is like these are the two extreme ends.

[01:02:18]Fine.

[01:02:19]Right and left. Here you like center. So what in India is a left parties they are here. Fine. Certain right parties they are here. There is no extreme right.

[01:02:32]There is no extreme left because any extreme right or any extreme left they usually do not follow the democratic principles. But India is a constitutional democracy. So this is why in practice India though maybe someone calling as a extreme rightist party or extreme leftist party that is their own narrative. In the constitutional framework like India it is not possible to go for extreme left or extreme right.

[01:02:59]And apart from the constitutional framework we do have a kind of a polity where the regional differences matters.

[01:03:06]Fine. So regionalism is also important factor in the Indian federal polity. So usually we do not have a extreme left and extreme right. So mostly parties lie in this area and because of this differences might be you may have a same government at center and same government at where? Same party government at the state but sometimes states show their reservation. You know this is not about party this is about center versus state.

[01:03:35]So from the very first meeting they came with a unique thing which is the best example of cooperative federalism.

[01:03:45]Though you can take a decision by 75% [clears throat] majority but the decision making in council happens through consenses.

[01:03:54]So consensus is a way to take decision only two incidents till the date where the voting happened and it happened because of the state who was giving dissent. So consent and descent works how consent works until unless everyone is going to agree we will not take decision.

[01:04:19]We will not take decision. So decision will be made only when everyone will be agree. So that is called consensus.

[01:04:26]Point descent system. Majority is agreed but few people are disagreeing. Usually happen at where? Supreme Court. So seven judges bench have taken a decision might be 6 is to 1 or 5 is to 2 fine or 4 is to 3. So 4 is to 3 shows that is a case which can be further changed its course.

[01:04:51]Do you remember case?

[01:04:54]basic structure and what was the descent number.

[01:05:03]>> Fine just check the Kishwan Nati case and see the number of descent judgment in that case and that is a widely discussed matter is still in Indian federal court. Fine because constitution have never g something like a basic structure. Fine. So this is why it is being debated. Now come back to our point. So here consensus will be the way to take decision at where in the GST council. Even a single state is going to say no that decision will be put on hold until unless that state is also going to be satisfied. Fine. Same thing we can see at international level in the WTO decision making. Consensus need to be developed in order to take decisions.

[01:05:54]Fine. So this is why such decision makings are very complex in the nature.

[01:05:59]Until unless everyone is going to agree the decision will be not taken and after 2022 judgment that thing become almost mandatory.

[01:06:13]not connected.

[01:06:16]I told about GST council and I told you GST council can legislate or GST council can give decision or recommendation.

[01:06:26]>> Initially it was considered as a decision binding on both union as well as state. So till then 2022 the situation was it is binding on both whom? center as well as state.

[01:06:44]One case went to the Supreme Court for some reason. Fine. And the reason was implement of interstate goods and services tax. Fine. IGST. Fine. So IGST can be charged or not. That was a matter. But on that case, Supreme Court, three judges bench, the present chief justice of India and former chief justice of India, Mr. Chandra Chun and one more judge. So three senior most judges I think all the three senior most judges like BR Gabay, Justice Chandra Chun and President Chief Justice of India Sur.

[01:07:20]>> Huh? Justice Sury Khan they have given this judgment and they said that GST council's recommendations are only recommendatory in the nature. They are not binding on the center as a state. Here something not exploded. After that what they have wrote in the judgment that have created a blast. Fine. They said that if center state want they can make the GST related rules on their own.

[01:07:58]This line the significance of try to understand the significance of this line.

[01:08:03]They said that center and state both can legislate in their own GST domain means GST council says that on this water bottle GST will be 5%.

[01:08:19]State said nine particular state said that no I want to impose 9%.

[01:08:27]Council said it no we are making a decision of how much 5%. State says no.

[01:08:33]How much?

[01:08:34]>> 9%.

[01:08:36]Now council went for what? 5%. Other state went for what?

[01:08:42]>> 5%. This state went for 9%. So if you go to that state, the bottle will be cost you with the 9% rate. In the other state, it will with what?

[01:08:53]>> 5% rate. Means you back to what situation?

[01:08:58]30th June 2017.

[01:09:01]So that decision have given this power to whom?

[01:09:06]>> States. Especially whom states because see see the matrix see the game here.

[01:09:11]You cannot take any decision without consent of who?

[01:09:16]Union. See 75% is required. So until unless union is going to agree you cannot take any decision.

[01:09:25]States are agree but center is not agree fine then decision will be taken by GT council answer is no why 75% is required or not to 75% is required but center hold how much 33.3 so until the center will be agree you cannot agree but suppose Tamil Nadu Keral Karnataka they have not agree they not agree still they can get the v weight vage of how much 75% can be crossed why because all the states combinedly have how 66.67 and every state have equal vote. Every state have what? Equal vote. So if three four states are going to do what? Three four states are going to disagree. Their disagreement will be not accepted and it will defeat the purpose of cooperative federalism. So Supreme Court's judgment initially seen by the people Supreme Court. What nonsense Supreme Court have did? Supreme Court have created a case.

[01:10:22]Supreme Court have did this, Supreme Court have did what? Lot of people wrote this. But actually Supreme Court did something magical.

[01:10:30]Now the consensus which earlier kind of a earlier see 2017 [clears throat] onwards we are taking decisions in the GST council through what consensus we agreed for the consensus. Okay, let's go for consensus rather than for what percentage >> 75% we will not 75% we will go for consensus fine means everyone need to agree this is we have agreed constitution says that >> 75%. Now after that judgment of 2022 if you will not go for this then those who are disagree suppose few states Tamil Nadu Kerala and Karnataka and Telangana they are saying that no it is not right but still GST council is reaching to what 85%.

[01:11:30]They will say that we are going to implement this decision. Why implementing this decision? We are going to implement this decision because it is wellqualifying. What rating?

[01:11:40]>> 75%.

[01:11:40]>> 75%. Now Telangana, Karnataka, Keral they will say that okay fine you can go with your rule. I will go with my own rule. So there will be one GST in other states and other GST in the other states. So GST will be defeated. So in order to make GST successful what you need, >> consensus fine. So usually people feel that the Supreme Court's judgment have opened the Pandora's box. Technically speaking, now every state have this power. They can set their own GST rates.

[01:12:20]Every state have this power. They can set their own GST rate. But if they will go for it, it will create more cues. But at the same time in the GST council meeting every member know that everyone sitting here have the power to defy the GST system. So let's create a common rule so that pay attention on my words.

[01:12:46]Let's create a rule so that no one need to defy the rule of GST. So let's accept on those things on which everyone is agreed. Do not try to impose certain thing on even a member. Though technically you have a power but if you use this power then state also have the power to ignore your GST ruling under what GST council so GST council's recommendations are not mandatory they are only recommendatory in the nature 20 before 2022 UPC question yes they are enforcable on the state supreme court said said try me fine try me and supreme court said that as per my judgment they are now only what recommendatory in the nature so it is about British parliament and Indian supreme court fine British parliament can make male to female female to male it's oxymoron fine they have the lawmaking power supreme court India also have the power but these powers majority of the times multiple times Supreme Court judgments are being criticized.

[01:14:09]But if you'll see from the federal quality point of view and putting your emotions aside of asympathy towards the political party particular political party or particular ideology and if you'll have only federal quality in your mind majority of the judgments of the Supreme Court are landmark and they have strengthened federal polity in India.

[01:14:29]Remember so you have to craftly write this point in the answer if it will come. I'll mention you the case also in what case Supreme Court have take the decision. Fine. So just write there.

[01:14:53]Case case.

[01:15:02]Huh? Right. Mojit minerals judgment case.

[01:15:09]Moit minerals.

[01:15:13]Any Mohit in the class?

[01:15:16]No moit in the class? Only Moit Minerals in the class. Right.

[01:15:23]In Union of India versus Mohit Minerals Private Limited case.

[01:15:30]in Union of India versus Mohit Minerals Private Limited case.

[01:15:40]Third judge was not BR Gavi. Third judge was uh Justice Vikram Nath just correction though it is not required to write just correcting. Right. Right. Now write three judges Supreme Court bench.

[01:15:55]Three judges Supreme Court bench.

[01:16:02]Given landmark judgment. given landmark judgment [snorts] with respect to functioning of with respect to functioning of GST and GST council. With respect to functioning of GST and GST council they are they are number one recommendations of GST council.

[01:16:34]Recommendations of GST council are not binding. Recommendations of GST council are not binding on union and states.

[01:16:52]The recommendations are The recommendations are the product of product of collaborative recommendations are product of collaborative discussion.

[01:17:11]Collaborative discussion involving involving union and states involving union and states.

[01:17:26]Third, both parliament both parliament and state legislature.

[01:17:39]Parliament and state legislature have simultaneous have a simultaneous power.

[01:17:50]Simultaneous and equal power not just simultaneous simultaneous and equal power or better write equal legislative power.

[01:18:01]Equal legislative power under article 246A under article 246A which grants power to parliament and state legislature which grants power to parliament and state legislature to make laws to make laws with respect to GST. To make laws with respect to GST.

[01:18:51]One more important observation of the Supreme Court. Article 279A.

[01:18:58]Article 279A creates the council creates the council as creates the council as forum [snorts] for cooperative federalism.

[01:19:13]Forum for cooperative federalism.

[01:19:17]Not just not a body.

[01:19:24]Not a body binding authority.

[01:19:29]Not a body with binding authority. Not a body with binding authority over its member.

[01:19:38]Exceptional judgment. Fine. And this judgment is not only going to be used in India. Fine. Usually what happens? For example, Kishwan Bharti case. Do you know that this Keshwan bharti case is not just case is used in India even that went back to US UK also. So UK's judiciary assumed the power. Since the Keshwan Bharti case multiple countries judiciary have assumed more power by citing the case of what?

[01:20:08]>> Case of Keshwanand Bharti. Fine. So Keshwan Bharti was not just a jurisperance case in India. It become a landmark judgment in the world. Fine. So similarly this judgment you can use this judgment in the GST and you can use the same judgment while writing on what cooperative federalism. So cooperative federalism is not something where you are going to bound by the things fine.

[01:20:34]So you created a council and that council is going to issue a gag order.

[01:20:38]You know you can't do this you can do that. Council is a federal in the nature. So this mohit minerals case have given a true color to what GST council as a federal council and as a example of cooperative federalism. So can state make their own laws with respect to GST?

[01:21:02]Answer is yes. But do they do this thing? Answer is no. GST council emphasize decision on the basis of consensus. Fine. [clears throat] And see one interesting fact is it is matter of money. Fine. Taxation. So in the matter of taxation it is always government versus public.

[01:21:28]It is not always versus this political party versus that political party. So usually when you are in the government doesn't matter you are in the central government or in the state government what matters matter more important matter is your understanding towards the tax less understanding towards your party principles and that is why I'm telling you again again multiple cases where the government which is ruling at center since 2017 BJP's ruling but many times BJP ruled state himself they have voted They have shown their reservation against the cent's position. So it is not about party. It is not about ideology. It is about smiling Gandhi G.

[01:22:14]Fine. Because you have to answer the public through your welfare [snorts] and the welfare depends upon two important factors. One is how much government is receiving through the taxes and through the borrowings. Borrowings always create a liability. So borrowing will go by the government only when the revenue sources are not sufficient. So government want to expend the revenue sources without putting too much burden on the public.

[01:22:39]So here this rationality works.

[01:22:42]Political ideology and other things work later. So GST council is a technical council also where the tax is being discussed rather than which party is good, which party is bad nothing. So it is more technical council. So whenever GST council meeting happened you should keep a eye on that fine how they are happening. So write one more thing then we'll wind up today and discuss other things tomorrow.

[01:23:11]Right.

[01:23:13]Council meeting happens on quarterly basis. On quarterly basis.

[01:23:28]Article 279 a clause 5. You can write this in the bracket. On quarterly basis 279 a clause 5. So how many meetings in a year? four meetings in a year, right?

[01:23:44]But in practice But in practice, council meets after every 2 months in general.

[01:24:08]Fine. Right. As a note, one half of the members one half of the members of council shall constitute shall constitute korum shall constitute korum at its meeting.

[01:24:34]at its meeting.

[01:24:37]So when meeting will happen how many members should be present? Half of the member but write further >> what >> shall constitute a korum constitute korum q u o r u m k cororum at its meeting.

[01:25:04]That means minimum 15 members. That means minimum 15 member must be present.

[01:25:10]That means minimum 15 members must be present.

[01:25:15]15 members must be present for council for council to validity transaction business.

[01:25:29]To validate to validate transact transaction or transact business fine write one more thing. No act no act or proceedings of GST council.

[01:25:59]No act or proceedings of GST council shall be invalid just because of any vacancy.

[01:26:25]or or any defect or any defect in the constitution of council.

[01:26:42]So maybe certain states are having president present rule. Fine. If they are having present rule, they can claim we was not there. So I will not accept this decision. Fine. We do not accept this. So it's not going to work because you was not there. It doesn't mean that the council have taken the wrong decision. Okay. So this is about GST council. Fine. Now give a heading key features key features of GST in practice. GST in practice.

[01:27:23]Okay, we'll do it tomorrow.

[01:28:00]Thank you.