GST Updates

Part-4-Which Institutions are included in Local Authority in GST-Regional Council, District Council and Development Board

Today’s update would discuss about the three Institutions which are covered under the Ambit of Local Authority by sub-clause (e), (f) and (g) of Section 2(69) of CGST Act, 2017:-

  • Regional Council or a District Council constituted under the Sixth Schedule to the Constitution,
  • Development Board constituted under article 371 of the Constitution, and
  • Regional Council constituted under article 371A of the Constitution.

These institutions are more of a kind of Regional Institutions created for specific territory or a region and are not formed across the country as was the case with the Institutions like Panchayat and Municipality.

 

  1. Regional Council or a District Council constituted under the Sixth Schedule to the Constitution

 Article 244 of the Constitution of India pertains to Administration of Scheduled Areas or Tribal Areas. Article 244(2) of the Constitution of India provides for administration of Tribal Areas.  The relevant extract is being reproduced herewith:-

  1. Administration of Scheduled Areas and Tribal Areas

(2) The provisions of the Sixth Schedule shall apply to the administration of the tribal areas in the States of Assam, Meghalaya, Tripura and Mizoram.

Sixth Schedule of the Constitution relates to administration and control of States of Assam, Meghalaya, Tripura and Mizoram. Sixth Schedule to the Constitution contains provisions for constitution of district and regional councils for the administration of tribal areas. The relevant extract is being reproduced herewith:

  1. Constitution of District Councils and Regional Councils.— (1) There shall be a District Council for each autonomous district consisting of not more than thirty members, of whom not more than four persons shall be nominated by the Governor and the rest shall be elected on the basis of adult suffrage.

 (2) There shall be a separate Regional Council for each area constituted an autonomous region under sub-paragraph (2) of paragraph 1 of this Schedule.

 

  1. Development Board constituted under article 371 of the Constitution

The provision relates to establishment of separate development boards for Vidarbha, Marathwada, and the rest of Maharashtra or, as the case may be, Saurashtra, Kutch and the rest of Gujarat. The provisions of Article 371(2) are being reproduced herewith:

 (2) Notwithstanding anything in this Constitution, the President may by order made with respect to the State of Maharashtra or Gujarat, provided for any special responsibility of the Governor for

 (a) the establishment of separate development boards for Vidarbha, Marathwada, and the rest of Maharashtra or, as the case may be, Saurashtra, Kutch and the rest of Gujarat with the provision that a report on the working of each of these boards will be placed each year before the State Legislative Assembly;

 (b) the equitable allocation of funds for developmental expenditure over the said areas, subject to the requirements of the State as a whole; and

 (c) an equitable arrangement providing adequate facilities for technical education and vocational training, and adequate opportunities for employment in services under the control of the State Government, in respect of all the said areas, subject to the requirements of the State as a whole.

The provision for constitution of development boards in area of Vidarbha, Marathwada, Saurashtra and Kutch had been inserted to cater to the specific development needs of these areas. These areas have been given a preferential states in terms of allocation of resources and facilities vis-a-vis- the rest of the state.

 

  1. Regional Council constituted under Article 371A of the Constitution

Article 371A of the Constitution of India pertains to formation of regional council for the Tuensang district of Nagaland. The relevant extract of the provision is being reproduced herewith:

(d) as from such date as the Governor of nagaland may by public notification in this behalf specify, there shall be established a regional council for the Tuensang district consisting of thirty five members and the Governor shall in his discretion make rules providing for

(i) the composition of the regional council and the manner in which the members of the regional council shall be chosen:

Article 371A further lists that notwithstanding anything contained in any other provisions of Constitution of India, provisions contained in Article 371A(2) would be operative for Tuensang district for a period of 10 years, from the formation of the state of Nagaland or for a further period as specified by Governor, on recommendations of the regional council. Some of the provisions include for the Governor to carry out the administration of Tuensang district and the he shall according to his discretion arrange for equitable distribution of money provided by the center, between Tuensang district & Rest of Nagaland . Final decision on all matters relating to Tuensang district shall be made by Governor. Members in Nagaland assembly from the Tuensang district would not be elected directly by the people but would be elected by the regional council.

Next update would discussing about the clause wherein a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund is treated as Local Authority.

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