NEW DELHI, SEPTEMBER 11: Moving swiftly ahead, the Finance Ministry has notified the provisions of the Constitution (One Hundred and First Amendment) Act, 2016 that will allow setting up of the crucial Goods and Services Tax (GST) Council.

The GST Council, to be chaired by the Union Finance Minister and includes State Ministers as members, will decide on all key issues relating to the indirect tax levy, including the rates, and will come into effect from September 12.

“The Central Government hereby appoints the 12th day of September, 2016 as the date on which the provisions of section 12 of the said Act shall come into force,” said the Finance Ministry notification.

President Pranab Mukherjee gave his assent to the Constitution Amendment Act on September 8 and the government is hoping to roll out the indirect tax levy from April 1, 2017.

According to the provisions of the Constitution Amendment Act, the GST Council will have to be set up within 60 days of its notification. The setting up of the Council is crucial to finalise the modalities of the new tax system.

Revenue Secretary Hasmukh Adhia has said the Finance Ministry will seek approval for setting up the GST Council in the next meeting of the Union Cabinet.

According to the Constitution Amendment Act, the Council will recommend the taxes to be subsumed and exempted from GST, the rates of taxation and the model Central, State and integrated GST laws.

It will also decide the threshold for levy of the tax, the date from which GST will be applicable to petroleum products as well as the dispute resolution mechanism.

States have indicated that they would like the GST Council to be separate from the Empowered Committee of State Finance Ministers but the final call is likely to be taken by the Finance Minister Arun Jaitley.

According to State Finance Ministers, the Empowered Committee can be a platform for States to discuss their regional issues while the GST Council can oversee the implementation of the indirect tax reform.