Understanding the Goods and Services Tax Council: Structure, Functions, and Key Meetings
The GST Council serves as India's supreme decision-making body for Goods and Services Tax, established to unify indirect taxes across the nation. Chaired by the Union Finance Minister and comprising state finance ministers, it determines tax rates, exemptions, and compliance deadlines. This article explores the Council's formation, structural hierarchy, key recommendations, and operational aspects, highlighting its crucial role in India's tax regime.
The concept of a unified Goods and Services Tax (GST) in India was initially proposed in 1999 during a meeting involving Prime Minister Atal Bihari Vajpayee and his economic advisors. A committee, led by then-West Bengal Finance Minister Asim Dasgupta, was established to develop the GST model. The initiative continued under Finance Minister P. Chidambaram in 2006, leading to GST's implementation on July 1, 2017. This comprehensive, destination-based indirect tax replaced various central and state indirect levies, such as VAT and excise duty. To govern its operations, the Indian government also formed the GST Council.
The last GST Council meeting occurred on June 22, 2024. Highlights from the 53rd GST Council meeting are available here.
Latest Updates
September 17, 2025The Central Board of Indirect Taxes and Customs (CBIC) issued notifications on September 17, 2025, detailing the recommendations made at the 56th GST Council meeting. Further information on these notifications can be found in the article titled ‘GST notifications’.
September 3, 2025The 56th GST Council meeting took place on September 3, 2025, in New Delhi. This meeting, held after a six-month interval, addressed several long-standing agenda items. Key decisions aligned with the government's vision for implementing advanced GST reforms, including the approval of a two-tier GST rate structure of 5% and 18%, thereby eliminating the previous 12% and 28% slabs.
Why the GST Council is Essential
The GST Council functions as the paramount committee tasked with amending, harmonizing, or introducing laws and regulations related to India's goods and services tax. It is presided over by the Union Finance Minister, Smt. Nirmala Sitharaman, and supported by the finance ministers from all Indian states.
This body is crucial for making all significant decisions concerning GST. These include determining tax rates, granting exemptions, establishing due dates for GST return filings, formulating tax laws, and setting other compliance deadlines, while also considering special rates and provisions for certain states. A fundamental responsibility of the GST Council is to ensure a unified tax rate for goods and services across the entire nation.
Composition of the GST Council
Article 279 (1) of the amended Indian Constitution mandates the President to constitute the GST Council within 60 days of Article 279A's commencement. As per this article, the GST Council serves as a collaborative platform for the Central and State governments. The council's structure is outlined below:
| Designation of the Person | Designation in GST Council |
|---|---|
| Union Finance Minister | Chairperson |
| Union Minister of State - In charge of Revenue of Finance | Member |
| Minister in charge of finance or taxation or any other Minister nominated by each state government | Members |
Key Recommendations from the GST Council
Article 279A (4) specifies that the Council provides recommendations to both the Union and state governments on significant GST-related matters. These include identifying which goods and services will be subject to or exempt from GST. Furthermore, they establish GST laws and the guiding principles for the following:
- Place of supply
- Threshold limits
- GST rates on goods and services
- Special rates designed to raise additional resources during natural calamities or disasters
- Specific GST rates for certain states
Operational Aspects of the GST Council
The GST Council is characterized by several important operational features:
- Its main office is situated in New Delhi.
- The Revenue Secretary holds the position of Ex-officio Secretary to the GST Council.
- The Central Board of Indirect Taxes and Customs (CBIC) chairperson participates as a permanent invitee (non-voting) in all GST Council proceedings.
- An Additional Secretary position is created for the GST Council.
- Four Commissioner posts, equivalent to a Joint Secretary level, are established within the GST Council Secretariat.
- The GST Council Secretariat is staffed by officers on deputation from both the Central and State Governments.
The cabinet also allocates funds for the recurring and non-recurring expenses of the GST Council Secretariat, with the Central government fully bearing these costs.
Frequency of GST Council Meetings
The Constitution does not specify a mandatory number of GST Council meetings per year. However, the Council convenes periodically to discuss and resolve significant GST-related issues, with the frequency of meetings adjusted based on prevailing needs. Historical trends indicate that the GST Council typically holds at least four meetings annually. A comprehensive list of past GST Council meetings is available here.
Quorum Requirements for GST Council Meetings
The Constitution stipulates that a quorum for a GST Council meeting requires the presence of one-third of its total membership.