The apex federal body that makes recommendations on all matters relating to the Goods and Services Tax, a flagship example of cooperative fiscal federalism.
- Constitutional body created by the 101st Constitutional Amendment Act, 2016, under Article 279A; constituted in September 2016.
- Chaired by the Union Finance Minister; members include the Union Minister of State for Finance and the Finance (or Taxation) Minister of every State.
- Voting: the Centre holds one-third of the weighted votes and all States together hold two-thirds; every decision needs a three-fourths majority of votes cast.
- Recommends tax rates, exemptions, threshold limits, model GST laws and the apportionment of integrated GST (IGST).
- The Supreme Court held in the Mohit Minerals case (2022) that the Council's recommendations are persuasive, not binding on the Union or the States.
Article 279A, the 101st Amendment, the one-third / two-thirds voting weight and the three-fourths majority rule are standard fiscal-federalism and GST facts.
The Centre holds one-third of votes (not a veto by simple majority), States together two-thirds, and decisions need a three-fourths majority; the Council's recommendations are persuasive, not legally binding, after the 2022 ruling.
Art 279A constitutional GST body (101st Amendment, 2016), Centre one-third and States two-thirds of votes, three-fourths majority needed.