The GST Council is a constitutional body under Article 279A of the Constitution of India that governs Goods and Services Tax. It is chaired by the Union Finance Minister and includes the Union Minister of State for Finance plus the finance (or nominated) ministers of all states and UTs with a legislature. Every decision needs a 3/4th weighted majority — the Centre holds 1/3rd of the votes and all states together hold 2/3rd. Its landmark 56th meeting (3-4 September 2025) rolled out GST 2.0, effective 22 September 2025.
Composition of the GST Council
The 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) |
| Union Minister of State (Finance) | Member | Part of Centre's 1/3rd |
| FMs of all States + UTs with legislature | Members (or any other nominated minister) | 2/3rd (States) |
Quorum: 50% of total members. Any decision needs at least 3/4th of the weighted votes cast.
Article 279A gives the Council a recommendatory role. In Union of India v. Mohit Minerals (2022) the Supreme Court held that its recommendations are persuasive, not legally binding on Parliament or state legislatures — though in practice both follow them for uniformity.
Key Functions of the GST Council
Under Article 279A(4), the Council makes recommendations on the core design of GST:
- GST rates & slabs — the merit/standard/demerit rates, special rates, cess and exemptions. Changes take effect only after CBIC rate notifications.
- Registration thresholds — currently ₹40 lakh (goods) / ₹20 lakh (services), with ₹20 lakh / ₹10 lakh for special-category states. See GST registration.
- Compliance framework — return forms, the GSTR-1 / GSTR-3B cycle, e-invoicing and e-way-bill thresholds, and the composition scheme.
- Model laws & principles — place of supply, apportionment of IGST, and special provisions for certain states.
- Dispute resolution — the primary forum for Centre-state and inter-state GST disputes; it also shaped the GST Appellate Tribunal (GSTAT).
Confused by a rate change or classification after a Council meeting?
Talk to a GST Expert →GST 2.0 — The Two-Slab Rate Reform
The Council's 56th meeting approved the biggest structural change since 2017. Effective 22 September 2025, the old four-slab system was collapsed into a simpler structure: the 12% and 28% slabs were removed, items moved to 5% or 18%, and a new 40% demerit rate was introduced for luxury and sin goods.
| Slab | Status after 22 Sep 2025 | Examples |
|---|---|---|
| Nil | Retained / expanded | Essential food, individual health & life insurance |
| 5% | Merit rate — many 12% items moved here | Daily essentials, medicines, several packaged foods |
| 18% | Standard rate — most 28% items moved here | Most goods & services |
| 40% | New demerit rate | Aerated drinks, luxury cars, yachts, casinos, tobacco* |
* Tobacco & pan masala continue at 28% + compensation cess until pending cess liabilities are cleared. Verify each HSN on the official rate finder before invoicing.
A Council recommendation only becomes law once CBIC issues the Central (CGST/IGST) rate notification and states mirror it via SGST. GST 2.0 rates apply from 22 September 2025. Always confirm the effective date on cbic-gst.gov.in before updating billing software or price lists.
- Individual health & life insurance premiums are now exempt (nil) from 22 September 2025 (previously 18%).
- Inverted duty structures in fertilisers and textiles were corrected.
- Life-saving drugs and many medical devices cut to 5% or nil.
Need to re-map your GST rate masters for GST 2.0?
Get GST 2.0 Help →Recent GST Council Meetings
| Meeting | Date | Key Decisions |
|---|---|---|
| 56th | 3-4 Sep 2025 | GST 2.0 — two-slab 5%/18% + 40% demerit; individual insurance nil; textiles/fertiliser inverted duty fixed (eff. 22 Sep 2025) |
| 55th | Dec 2024 | Term life-insurance relief reviewed; fortified rice kernels 5%; agriculturist pepper & raisins exempted |
| 54th | Sep 2024 | GoM on health & life insurance formed; namkeens rate cut; select cancer drug to 5% |
| 53rd | Jun 2024 | Section 128A interest/penalty waiver for FY 2017-20; railway platform tickets exempted; GSTAT roadmap |
| 52nd | Oct 2023 | Online gaming/casinos 28% on face value confirmed; extra neutral alcohol out of GST |
Track decisions on gstcouncil.gov.in, PIB press releases and CBIC notifications after each meeting.
GST Appellate Tribunal (GSTAT)
The GST Appellate Tribunal — shaped through the Council and enabled by the Finance Act, 2023 — was launched on 24 September 2025. It sits above the AAR/AAAR and gives taxpayers an independent judicial forum for GST disputes before the High Courts.
For orders communicated before 1 April 2026, the window to file GSTAT appeals under Section 112 has been extended (to 31 July 2026 per the latest notification). Check the current deadline on the portal before filing.
Frequently Asked Questions
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