GST Council: Formation, Structure, Functions, and Voting

The GST Council plays a crucial role in taxation in India. It is responsible for recommending tax rates, tax exemptions, and other tax-related policies. It also oversees the implementation of the GST and takes action to resolve any issues that may arise. The GST Council meets regularly to discuss policy matters related to the GST and to make decisions regarding the taxation system in India.

The first meeting of the GST Council was held on 22 September 2016. During this meeting, the Council began deliberations on key aspects of the GST framework, including rules, administrative mechanisms and implementation strategies ahead of the nationwide rollout of GST on 1 July 2017.

Each State and Union Territory with a legislature is represented in the GST Council by its Minister in charge of Finance or Taxation, or by another Minister nominated by the respective State Government. These representatives participate in discussions and voting on GST-related matters alongside representatives of the Central Government.

The GST Council makes recommendations on GST rates, exemptions, compliance requirements and threshold limits that directly impact small businesses. Its decisions influence the tax burden, return filing obligations, eligibility for composition schemes and overall ease of doing business for registered taxpayers across India.

The GST Council's recommendations are advisory in nature and are not automatically enforceable. The Central Government and State Governments implement GST changes by issuing the necessary notifications, rules or legislative amendments under the applicable GST laws. While the recommendations carry significant persuasive value and are generally adopted, they do not have the force of law unless formally notified or enacted.

Registration under GST is mandatory for eligible businesses crossing the prescribed turnover limits, addressing why is GST registration mandatory for businesses. The GST Council recommends and revises these thresholds: generally Rs. 20 lakh for goods and services in most States, with lower limits applicable in specified special-category States. Check your turnover, business activity and State-specific rules to confirm your GST registration obligations.

GST on services is calculated as Taxable value × Applicable rate ÷ 100. The applicable service rates include 5%, 12%, 18%, and 28%, depending on the service category. The GST Council sets the applicable rate for each service category. For a quick calculation, use the GST calculator on Bajaj Finance to estimate the GST payable on your firm's services.

Article 279A, inserted by the Constitution (One Hundred and First Amendment) Act, 2016, provides for the GST Council. The President constituted the Council in 2016 to make recommendations to the Union and the States on GST-related matters.

The Central Government holds one-third of the total voting weight, while State Governments collectively hold two-thirds. A proposal put to a vote requires at least three-fourths of the weighted votes of members present and voting. At least half of the Council’s total membership must be present for a quorum.

The GST Council meets as required to consider rate proposals, compliance issues and other GST matters. Its meetings do not follow a fixed monthly or quarterly schedule. The 57th meeting took place on 8 October 2026. Meeting frequency should not be confused with the effective dates of individual recommendations.

GST Council recommendations do not automatically change the law. The relevant government or legislature must implement them through the required legal process. Depending on the recommendation, this may involve amendments to legislation or rules, statutory notifications or clarificatory circulars. Check the implementing instrument and its effective date before applying a change.

The GST Council recommends rates, exemptions, floor rates with bands, and special rates for specified periods to raise resources during natural calamities or disasters. It also recommends special provisions for certain States. Governments implement applicable changes through the required legal process; the Council does not itself issue rate notifications.

Yes. The Council recommends changes to GST laws and procedures, including registration and refunds. At its 57th meeting, it recommended clearer registration-document requirements and faster, system-based refund processing. These recommendations require the relevant legal or administrative implementation before taxpayers can rely on them.

The voting structure requires support from both the Centre and participating States. The Centre’s one-third voting weight is insufficient to approve a proposal alone, while the States’ collective two-thirds also falls below the three-fourths threshold. This means neither side can independently carry a proposal put to a vote.

A proposal put to a vote is not carried if it receives less than three-fourths of the weighted votes of members present and voting. Members may continue discussions, revise the proposal or reconsider it later. Failure to carry that proposal does not itself change the existing law.

As of 22 October 2026, the latest meeting was the 57th, held on 8 October 2026. Recommendations included faster refunds, simpler registration, wider input tax credit eligibility and changes to enforcement provisions. The meeting also addressed classification and tax-treatment clarifications. Each measure depends on its implementing instrument and effective date.

The 57th meeting recommended amending Section 17(5) of the CGST Act to remove restrictions on input tax credit for health and life insurance. The recommendation alone does not establish entitlement to credit. Businesses must check the enacted amendment, its effective date and the other applicable eligibility conditions before claiming ITC.

Yes. The 56th meeting in September 2025 recommended a structure centred on 5% and 18%, with a special 40% rate for specified goods and services. Nil-rated and exempt supplies continued. Product-specific notifications and commencement dates determine the rate applicable to an individual supply.