GST Council Meeting, Key Decisions, GST Rate Revisions, and Impact

The GST Council is a constitutional body in India responsible for making key decisions on Goods and Services Tax, ensuring a unified and transparent indirect tax system.

Table of Contents

Context: The GST Council will hold its 56th meeting on September 3–4, 2025, in New Delhi to discuss GST rate cuts and reforms.

GST Council

GST Council was established under the 101st Constitutional Amendment Act, 2016, through Article 279A.
It is a constitutional body responsible for addressing GST-related issues and providing recommendations to both the Union and State governments.
Secretariat is located in New Delhi.

Vision & Mission

Vision: Promote cooperative federalism by creating a harmonised GST system.
Mission: Develop a simplified, IT-driven GST structure through wide consultations.

Objectives

Ensure smooth and uniform implementation of GST.
Simplify tax structure, eliminate cascading taxes, and lower compliance costs.
Monitor GST processes and prevent fraud.

Composition

Chairperson: Union Finance Minister.
Vice-Chairperson: Elected by members of the Council.
Members:
- Union MoS (Finance/Revenue).
- Finance/Taxation Ministers of States (or nominated Minister).
Permanent Invitee: CBIC Chairperson (non-voting).
Ex officio Secretary: Union Revenue Secretary.

Constitutional Provisions (Article 279A)

Formation: The President must constitute the GST Council within 60 days of the amendment.
Levy on Specific Goods: Can recommend GST date for petroleum, diesel, petrol, natural gas, and aviation fuel.
Guiding Principle: Promote a unified national market.
Procedural Powers: Can decide its own working procedures.
Validity: Council decisions remain valid despite vacancies or minor flaws.
Dispute Resolution: Can settle disputes between the Centre and States regarding GST.

Functions (Article 279A(4))

Recommend on:

GST rates, exemptions, and threshold limits.
Goods & services under GST or exempted.
Model GST laws and place of supply rules.
Apportionment of GST in inter-state trade (Article 269A).
Special rates apply in the event of disasters/calamities.
Special provisions for North-Eastern & hilly states.

Working of the GST Council

Quorum: At least half of the total members must be present.
Decision-Making: Requires a 3/4th majority of weighted votes.
Voting Power:
- Centre = 1/3rd weightage.
- States (collectively) = 2/3rd weightage.