A single common “Goods and Services Tax (GST)” was proposed and given a go-ahead in 1999 during a meeting between the Prime Minister Mr. Atal Bihari Vajpayee and his economic advisory panel. Mr. Vajpayee set up a committee headed by the then finance minister of West Bengal, Asim Dasgupta to design a GST model.
Later, Finance Minister Mr. P Chidambaram in February 2006 continued work on the same. It finally was implemented on July 1st, 2017 to be a comprehensive, destination-based indirect tax that has replaced various indirect taxes that were implemented by the states and Centre such as VAT, excise duty, and others. The government of India also formed a GST Council to govern the GST rules. The last GST Council meeting took place on 22nd June 2024. You can read the highlights of the latest GST Council meeting here.
Latest Updates
9th September 2024
The 54th GST Council Meeting was held on 9th September, 2024 at New Delhi. The 54th GST Council meeting introduced certain significant updates such as the expansion of e-invoicing for B2C transactions, providing deadline for balance declaration for new ledgers on the GST portal (IMS, RCM and ITC Reclaim), and rate rationalisation. The council upheld the 28% GST on online gaming, casinos, and racecourses, noting a significant revenue increase. It also established two new Groups of Ministers (GoMs) for rate rationalisation and cess management, with reports expected by October 2024.
22nd June 2024
The 53rd GST Council meeting took place on Saturday, 22nd June 2024 in New Delhi. The Council discussed matters concerning ease of compliance burden under GST, GST rate changes for a few goods and services, waiver of interest/penalties in certain cases, and proposed certain relaxations for claiming input tax credit, amongst other recommendations.
Why do we need a GST Council?
GST Council is an apex member committee to modify, reconcile or to procure any law or regulation based on the context of goods and services tax in India. The council is headed by the union finance minister Smt. Nirmala Sitharaman, who is assisted by finance ministers of all the states of India.
The GST council is the key decision-making body that will take all important decisions regarding the GST. The GST Council decides tax rates, tax exemptions, the GST return due dates, tax laws, and other compliance deadlines, keeping in mind special rates and provisions for some states. The predominant responsibility of the GST Council is to ensure to have one uniform tax rate for goods and services across the nation.
How is the GST Council structured?
Article 279 (1) of the amended Indian Constitution states that the GST Council has to be constituted by the President within 60 days of the commencement of the Article 279A. According to the article, GST Council will be a joint forum for the Centre and the States. Here's the hierarchy of the GST council:
Designation of the person | Designation in GST Council |
| Union Finance Minister | Chairperson |
| Union Minister of State - In charge of Revenue of Finance | Member |
| Minister in charge of finance or taxation or any other Minister nominated by each state government | Members |
GST Council recommendations
Article 279A (4) specifies that the Council will make recommendations to the Union and the states on the important issues related to GST, such as, the goods and services will be subject or exempted from the GST. Further, they lay down GST laws, principles that govern the following:
- Place of supply
- Threshold limits
- GST rates on goods and services
- Special rates for raising additional resources during a natural calamity or disaster
- Special GST rates for certain states
Features of GST Council
- GST Council office is set up in New Delhi
- Revenue Secretary is appointed as the Ex-officio Secretary to the GST Council
- Central Board of Indirect Taxes and Customs (CBIC) is included as the chairperson as a permanent invitee (non-voting) to all GST Council proceedings
- Create a post for Additional Secretary to the GST Council
- Create four posts of commissioner in the GST Council Secretariat (This is at the level of Joint Secretary)
- GST Council Secretariat will have officers taken on deputation from both the Central and State Governments
The cabinet also provides funds for meetings the expenses (recurring and nonrecurring) of the GST Council Secretariat. This cost is completely borne by the Central government.
GST Council meetings
The Constitution did not mention the number of GST Council meetings per year. However, the Council meets periodically to discuss and decide on important issues related to GST. Further, the frequency of meetings depends on these needs.
The previous trends show that the GST Council met a minimum of four times in a year. Here's the list of GST Council meetings that have happened till now: https://gstcouncil.gov.in/gst-council-meetings.
What is the quorum for GST Council meeting?
The Constitution states that one-third of the total number of GST Council members shall constitute the quorum.