GST Council

In one line: A constitutional body under Article 279A, chaired by the Union Finance Minister, that recommends GST rates, exemptions and rules to the Centre and States.

Composition and voting

Members are the Union Finance Minister (chair), the Union Minister of State for Finance, and the finance or other nominated ministers of every State. One-half of members form the quorum. A decision needs three-fourths of the weighted votes of members present and voting; the Centre's vote has one-third weight and all States together two-thirds. So neither the Centre alone nor the States alone can carry a decision.

Status of its recommendations

In Union of India v. Mohit Minerals (2022), the Supreme Court held that the Council's recommendations are persuasive and not binding on Parliament and State legislatures, reflecting cooperative federalism.

Why it is in the news

Its 56th meeting on 3 September 2025 approved the 5%, 18% and 40% structure, and process reforms are now to be placed before it.

Where to go next

• 101st Constitutional Amendment and Article 279A
• Compensation cess and the 40% rate