GST COUNCIL

Why in news? The 57th GST Council meeting is expected to be delayed to May–June due to elections in multiple States and a Union Territory.
GST COUNCIL
•  The GST Council is a constitutional body created under Article 279A by the 101st Constitutional Amendment Act, 2016. 
•  It is a joint forum of Centre and States to ensure cooperative federalism in indirect taxation.
Composition
•  The Council consists of: 
o  Union Finance Minister (Chairperson) 
o  Union Minister of State for Finance/Revenue 
o  State Finance/Taxation Ministers 
•  The members of the Council from the states choose a Vice-Chairperson from among themselves. 
•  The Chairperson of the Central Board of Excise and Customs is a permanent invitee (non-voting).
Working & Decision-Making
•  The quorum is 50% of total members. 
•  Decisions of the Council are taken by a majority of not less than three-fourths of the weighted votes of the members present and voting. 
•  In the voting structure, the vote of the Central Government carries a weightage of one-third of the total votes cast. 
•  The votes of all the State Governments taken together carry a weightage of two-thirds of the total votes cast.
•  According to the Rules for Procedure and Conduct of Business Regulations of the GST Council, the body is mandated to meet at least once every quarter of the financial year.
Functions
•  The GST Council recommends the taxes, cesses, and surcharges levied by the Centre, States, and local bodies that are to be subsumed under the GST framework. 
•  The GST Council recommends the rates of GST as well as the goods and services that may be exempted from taxation. 
•  The GST Council determines the threshold limits of turnover below which goods and services may be exempted from GST. 
•  The GST Council recommends model GST laws and formulates principles governing the place of supply of goods and services. 
•  The GST Council provides special provisions for certain States, particularly those with special category status or unique geographical conditions. 
•  The GST Council also recommends the date on which GST may be levied on petroleum products such as crude oil, diesel, petrol, natural gas, and aviation turbine fuel. 
•  The GST Council suggests compensation mechanisms for States to offset revenue losses arising from the implementation of GST. 
•  The GST Council establishes mechanisms to resolve disputes arising between the Centre and States or among States with respect to GST implementation. 
Recent Developments / Data
•  The total number of GST registrations increased from 1.56 crore in October 2025 to 1.63 crore in March 2026, reflecting continued expansion of the tax base. 
•  A simplified GST registration scheme introduced in November 2025 enables automated approval within three working days for low-risk applicants. 
•  Experts highlight that approximately 96% of new applicants benefit from this simplified registration scheme. 
•  Concerns persist regarding refund-related issues and input tax credit (ITC) blockages, particularly due to the distinction between goods and services in the GST framework.