## GST Council – The Apex Federal Body for GST Decisions

### Why a GST Council?

Since GST is levied by both Centre and State on the same transaction, a common forum is needed to:

Avoid inter-governmental disputes
Maintain uniformity in tax rates and rules
Make recommendations that bind both Centre and States

Under Article 279A, the President of India is empowered to constitute the GST Council (constituted on 12 September 2016).

### Composition of GST Council

Position	Role
Union Finance Minister	Chairperson
Union Minister of State (Finance / Revenue)	Member
Finance Minister of each State (or nominated minister)	Member

One member nominated from among State members is the Vice-Chairperson (for such period as the Council decides).

### Recommendations of the GST Council

The Council recommends on:

1. Tax rates (CGST, SGST, IGST and Cess) on various goods and services

2. Goods and services that should be exempted

3. Taxes, cesses and surcharges that should be subsumed into GST

4. Date from which the 5 petroleum products should be brought under GST

5. Special category States that may get special provisions

6. Threshold limits for registration, composition scheme

7. Model GST law, principles of levy, place of supply rules

8. Any other matter relating to GST

### Procedural Aspects – Decision Making

Aspect	Rule
Quorum	One-half of total members
Decision Threshold	75% of weighted votes of members present and voting
Centre's voting weight	1/3 of total votes cast
All States combined	2/3 of total votes cast

### Why This Voting Structure?

Neither Centre alone nor all States together can push a decision unilaterally:

Centre alone has 33% — far short of 75% needed.
All States together have 67% — also short of 75%.
So consensus between Centre and a substantial number of States is essential.

### Validity Despite Defects

No act/proceeding of the Council is invalid merely because of:

Any vacancy or defect in constitution of the Council
Any defect in appointment of a member
Any procedural irregularity that does not affect the merits of the case

Worked example

### Example 1

Example – Voting Math

Suppose all 33 members of the GST Council are present and voting (1 Centre + 1 MoS Finance + 31 State FMs). Centre's combined weight = 1/3 = 33.33%. Suppose a tax rate change is proposed.

(a) Centre votes YES + 10 States vote YES; 21 States vote NO.

Centre weight = 33.33%
10 States out of 31 = 10/31 × 66.67% = 21.50%
Total YES = 54.83% → Below 75% — Rejected.

(b) Centre votes NO + all 31 States vote YES.

States = 66.67% YES
Centre = 33.33% NO
Total YES = 66.67% → Below 75% — Rejected (States alone cannot decide).

Centre = 33.33%
25/31 × 66.67% = 53.76%
Total YES = 87.09% → Above 75% — Passed.

### Example 2

Example – Quorum check

GST Council has 33 members. Quorum = 1/2 = 17 members. If only 16 attend a meeting, no valid decision can be taken — irrespective of how they vote.

⚠️ Common exam mistakes

Stating quorum as 2/3 or 75% — it is actually 1/2 of total members.
Confusing the 75% decision threshold with the 1/3 Centre weightage — both are independent requirements.
Forgetting that recommendations of the GST Council were earlier considered binding, but the Supreme Court in Mohit Minerals (2022) held them to be recommendatory — though in exam, follow the syllabus position.
Listing Prime Minister as Chairperson — it is the Union Finance Minister.
Forgetting that even with procedural defects, Council decisions remain valid (saving clause).

Bare-Act text Article 279A · Constitution of India · click to expand

Article 279A(1): The President shall, within sixty days from the date of commencement of the Constitution (One Hundred and First Amendment) Act, 2016, by order, constitute a Council to be called the Goods and Services Tax Council. (9) Every decision of the Goods and Services Tax Council shall be taken at a meeting, by a majority of not less than three-fourths of the weighted votes of the members present and voting, in accordance with the following principles, namely: (a) the vote of the Central Government shall have a weightage of one-third of the total votes cast, and (b) the votes of all the State Governments taken together shall have a weightage of two-thirds of the total votes cast, in that meeting.

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GST Council – Article 279A

Worked example

⚠️ Common exam mistakes