GST Council — Composition, Functions & Latest Decisions
Updated: 3 June 2026 | Article 279A, Constitution of India | CGST Act, 2017
Centre: 1/3rd vote weight | All States combined: 2/3rd vote weight | Quorum: 50% of members
Composition of the GST Council
The GST Council was constituted on 15 September 2016 under Article 279A, inserted by the 101st Constitutional Amendment Act. Its permanent members are:
| Member | Role | Vote Weight |
|---|---|---|
| Union Finance Minister | Chairperson (presides over all meetings) | 1/3rd (Centre total) |
| Union Minister of State for Finance | Member | |
| Finance Ministers of 28 States + 3 UTs with Legislature | Members (or any other nominated minister) | 2/3rd (States combined) |
States may nominate any other minister if the Finance Minister is unavailable. A quorum of 50% of total members is required to conduct a meeting. Any decision requires the votes of at least 3/4th of the weighted votes cast.
Key Functions of the GST Council
Recommend GST Rates
The Council recommends GST rates on goods and services — the 0%, 5%, 12%, 18%, and 28% slabs — and any special rates or exemptions. Rate changes take effect only after official CBIC notifications.
Registration Threshold Limits
The Council recommends the turnover threshold for GST registration. Currently: ₹40 lakh for goods (₹20 lakh for special category states); ₹20 lakh for services. Can be revised upward or downward by the Council.
Dispute Resolution Between Centre and States
The Council is the primary forum for resolving disputes between the Union and states, or between two or more states, on GST matters. It also oversees the GST Appellate Tribunal (GSTAT), constituted in 2024, for taxpayer disputes above AAR/AAAR level.
GST Returns, Compliance & E-Invoicing
The Council recommends compliance procedures including return forms, e-invoicing thresholds, e-way bill applicability, and the GST compensation cess structure. The GSTN (GST Network) operates under Council oversight.
Recent GST Council Meetings — Key Decisions
| Meeting | Date | Key Decisions |
|---|---|---|
| 55th Meeting | Dec 2024 | Term life insurance GST reduced to 0%; EV commercial vehicles — concessional rates; fortified rice kernels 5% GST; pepper and raisins by agriculturists — exempted |
| 54th Meeting | Sep 2024 | GST on health & life insurance under review (GoM formed); namkeens/snacks at 12%; cancer drug Trastuzumab Deruxtecan — 5% GST; car seats for infants — 18% |
| 53rd Meeting | Jun 2024 | GSTAT Benches operationalisation roadmap; waiver of interest/penalty under Section 128A for FY 2017-20 demands; railway platform tickets — exempted; milk cans — 12% |
| 52nd Meeting | Oct 2023 | Online gaming / casinos / horse racing — 28% GST on face value confirmed; extra neutral alcohol for human consumption — out of GST (state excise); millet flour 70%+ — nil rate |
| 50th Meeting | Jul 2023 | 28% GST on online gaming (face value); IGST on imported goods cleared from bonded warehouse amended; dinutuximab (cancer drug) — nil; food/beverages in cinema halls — 5% |
| 47th Meeting | Jun 2022 | Pre-packaged & labelled food items (curd, paneer, rice etc.) — 5% GST; LED lights — 12% reduced to 12% maintained; hotel rooms under ₹1,000/day — nil (previously 12%) |
How GST Council Decisions Affect Your Business
When the GST Council recommends a rate change, the following process applies before it affects businesses:
| Step | Action | Typical Timeline |
|---|---|---|
| 1 | GST Council meets and recommends rate change in official press release | Day 0 (meeting day) |
| 2 | CBIC drafts amendment to GST rate notification (CGST/IGST) | 1–4 weeks after meeting |
| 3 | Central Government issues Gazette notification with effective date | Varies — can be same day as notification or future date |
| 4 | States issue parallel SGST notifications (usually mirrors Centre) | Within days of Central notification |
| 5 | Businesses update billing software, price lists, GST rate masters | Before effective date |
| 6 | First GSTR-1 / GSTR-3B after effective date must reflect new rates | Next return due date |
GST Appellate Tribunal (GSTAT) — 2024 Update
The GST Appellate Tribunal was constituted in 2024 after the Finance Act, 2023 amended the CGST Act. It sits above the Authority for Advance Ruling (AAR) and Appellate Authority for Advance Ruling (AAAR), providing an independent judicial forum for GST disputes before High Courts. GSTAT benches are being set up state-wise and are progressively becoming operational.
Frequently Asked Questions
Related Pages
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