The correct answer is: D. Central Government in consultation with state governments
The GST Council is a body comprising of the Union Finance Minister and the Finance Ministers of all the states and union territories. It is responsible for making recommendations to the Central Government on important issues related to GST,
including the rates of tax. The Central Government takes the final decision on the rates of tax, but it is required to consult the GST Council before doing so.The GST Council was set up under the GST Act, which came into force on July 1, 2017. The Act provides that the GST Council shall have the power to make recommendations to the Central Government on the following matters:
- The rates of tax
- The classification of goods and services
- The exemptions and special provisions
- The valuation of goods and services
- The place of supply of goods and services
- The procedures and administration of the GST law
The GST Council has been meeting regularly since its inception. It has made a number of recommendations to the Central Government on the above matters. The Central Government has accepted most of the recommendations of the GST Council.
The GST Council has played a vital role in the successful implementation of the GST law. It has helped to ensure that the GST law is implemented in a smooth and efficient manner.