Quick Summary
GST Council decides GST rates, exemptions, and procedural matters.
The GST Council is the constitutional body that governs India's Goods and Services Tax. It was created under Article 279A of the Constitution, inserted by the Constitution (One Hundred and First Amendment) Act, 2016, and is the apex authority that recommends tax rates, exemptions, threshold limits, cess levies, and the design of GST law to the Union and state governments. Its recommendations underpin the CGST, SGST, IGST and UTGST Acts.
Composition
The Council is chaired by the Union Finance Minister. Its members are the Union Minister of State in charge of Revenue or Finance, and the Minister in charge of Finance or Taxation (or any other nominated minister) from each state and union territory with a legislature. A Vice-Chairperson is chosen from among the state ministers.
How voting works
Every decision needs a majority of at least three-fourths of the weighted votes of the members present and voting. The Centre's vote carries one-third of the total weight, while all the states together hold two-thirds. The quorum for a meeting is one-half of the total number of members.
- Central Government: 1/3 of votes cast
- All states combined: 2/3 of votes cast
- Passing threshold: 75% weighted majority
Recent work
The Council meets periodically to review rates and compliance. At its 56th meeting on 3 September 2025 it approved the "GST 2.0" reform, scrapping the 12% and 28% slabs and moving to a simpler 0/5/18/40 structure, with the new rates effective from 22 September 2025.
Key Points
- Constitutional body
- Union FM as Chair
- States FM as members
- Decides rates and rules
- 3/4th majority required