Page 39 – GST Council

Based on M. Laxmikanth – Indian Polity (6th Edition)

📖 Part VII: Constitutional Bodies 📄 Page 39 of 60
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Key Idea Summary

Core concepts and exam relevance

Core Concept Summary

The GST Council (Article 279A) is a unique constitutional body that unites Centre & States to make decisions on:

  • GST rates
  • Tax slabs
  • Exemptions
  • Revenue sharing
📌 Why This Topic is Important for UPSC / State Exams
  • Composition and chairperson
  • Unique voting pattern
  • Special federal nature
  • 101st Constitutional Amendment
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Composition of GST Council

Members and structure

👑

Chairperson

Union Finance Minister
  • Presides over meetings
  • Convenes council sessions
  • Sets meeting agenda
🏛️

Union Members

  • Union Finance Minister (Chair)
  • Union MoS Finance
  • Represent Central Government
🗺️

State Members

  • Finance Minister from each State
  • Finance Minister from each UT with legislature
  • All 28 states + relevant UTs
📋

Constitutional Basis

  • Article 279A
  • Added by 101st Amendment
  • 2016 – Amendment passed
  • 2017 – GST implemented
🗳️

Unique Voting System

Ensuring cooperative federalism

1/3

Centre's Vote Weight

33.33% of total votes

2/3

States' Vote Weight

66.67% combined

75%

Required Majority

For passing decisions

🎯 Key Implication:

With Centre having 1/3 votes and needing 75% majority → Neither Centre nor States alone can pass a decision. This ensures consensus-based cooperative federalism.

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Functions of GST Council

Recommendations on taxation

📊 GST Rates

Recommend tax slabs (0%, 5%, 12%, 18%, 28%)

📋 Exemption List

Goods & services exempt from GST

📈 Threshold Limits

Turnover limits for registration (₹20L/₹40L)

⚖️ Dispute Resolution

Resolve Centre-State or State-State disputes

📜 Model Laws

Decide model GST law provisions

💰 Compensation

Recommend compensation to states for revenue loss

📅

GST Timeline

From conception to implementation

1
2000 – GST Idea

Kelkar Task Force suggests unified indirect tax

2
2016 – 101st Amendment

Constitutional amendment passed; Article 279A inserted

3
July 1, 2017 – GST Launch

"One Nation, One Tax" implemented midnight

4
2018-2023 – Rationalization

Multiple rate cuts, simplified slabs, compensation issues

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Simulation Lab

GST Council Decision Simulator

🧪 GST Council Meeting Simulator

See how GST Council makes decisions.

Council Decision
🏛️

Select a scenario to see Council process.

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Exam Booster – Practice Questions

Test your understanding

1 Who chairs the GST Council?

A Prime Minister
B Union Finance Minister
C CBIC Chairman
D RBI Governor
✓ Correct Answer: B – Union Finance Minister

Union Finance Minister is the chairperson of GST Council under Article 279A.

2 Centre's vote weight in GST Council is:

A 1/2 (50%)
B 1/3 (33%)
C 1/4 (25%)
D 2/3 (67%)
✓ Correct Answer: B – 1/3 (33%)

Centre = 1/3, States = 2/3. Decisions need 75% majority. This ensures neither can dominate → cooperative federalism.

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Memory Hooks & Quick Revision

Key takeaways for exam day

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Revision Summary

One-Line Takeaway
"Council = Centre + States → Tax harmony. Decisions need 75% vote → consensus model."
3 Exam Points to Remember
  • 1 Art. 279A: GST Council | 101st Amendment (2016) | Chair: Union FM
  • 2 Voting: Centre 1/3 + States 2/3 | Majority: 75% required for decisions
  • 3 Functions: GST rates, exemptions, disputes, model laws, compensation