GST Council: notes for bank exams

At a glance

The Goods and Services Tax Council is a joint forum of the Union and the States that recommends GST rates, exemptions, thresholds and model laws. It was created by Article 279A of the Constitution, inserted by the 101st Amendment Act, 2016. It is chaired by the Union Finance Minister and decides by a weighted three-fourths majority, so neither the Centre nor the States can push through a decision alone.

Key facts

Constitutional basis: Article 279A, inserted by the 101st Constitutional Amendment Act, 2016
Constituted by: the President, in September 2016
Chairperson: Union Finance Minister (Nirmala Sitharaman)
Members: Union Minister of State for Finance/Revenue, and the Finance (or other nominated) Minister of each State and of the UTs with legislatures (Delhi, Puducherry, J&K)
Vice-Chairperson: chosen by the State members from among themselves
Quorum: half of the total members
Voting weight: Centre one-third; all States together two-thirds
Decision rule: at least three-fourths of the weighted votes of members present and voting
GST rolled out: 1 July 2017
Latest meeting: 57th, 8 October 2026, Bharat Mandapam, New Delhi

How it works

The voting maths. Because the Centre has one-third of the weight and three-fourths is needed, the Centre alone cannot pass anything; the States together also fall short (two-thirds is less than three-fourths). A decision needs the Centre plus at least a large group of States. In practice the Council has nearly always decided by consensus.

What it recommends (Article 279A(4)). Taxes and cesses to be merged into GST, goods and services to be taxed or exempted, model GST laws, the threshold turnover for GST, rates (including floor rates and special rates in a disaster), special provisions for certain North-Eastern and Himalayan States, and the date from which GST applies to crude oil, diesel, petrol, natural gas and ATF (still outside GST).

Are its recommendations binding? In Union of India v. Mohit Minerals (2022), the Supreme Court held that the Council's recommendations have persuasive value and are not binding on Parliament and State legislatures, reflecting cooperative federalism.

Notable meetings.

Meeting	Date	Outcome
1st	September 2016	First meeting after the Council was set up
56th	3 September 2025	"GST 2.0": main slabs cut to 5% and 18%, with 40% for sin and luxury goods, effective 22 September 2025
57th	8 October 2026	Arrest powers removed; prosecution threshold raised to ₹5 crore

Recent developments

8 Oct 2026: The 57th GST Council meeting recommended removing arrest powers by omitting Section 69 of the CGST Act, 2017; raising the prosecution threshold from ₹1 crore to ₹5 crore; a minimum tax amount of ₹10,000 before a show cause notice; and easing several input tax credit restrictions under Section 17(5). It agreed in principle to an optional simplified scheme for small consumer-facing businesses with turnover up to ₹5 crore.

Exam traps

GST Council is under Article 279A; Article 246A gives Parliament and State legislatures the power to levy GST; Article 269A covers IGST on inter-State supplies.
The 101st Amendment created GST; it is often confused with the 122nd Bill number.
The Union Finance Minister chairs it, not the Prime Minister.
Weight: Centre 1/3, States 2/3; decisions need 3/4.
Its recommendations are not binding (Mohit Minerals, 2022).

Quick check

Q: Which Article of the Constitution provides for the GST Council? A: Article 279A.
Q: What share of the voting weight does the Centre have in the GST Council? A: One-third.
Q: What majority is needed for a GST Council decision? A: Three-fourths of the weighted votes of members present and voting.

Sources

In the news

Every time this topic has appeared in our current affairs, newest first:

Week of 8–14 October 202657th GST Council removes arrest powers and raises the prosecution threshold to ₹5 crore