GST Council (GSTC) - Decisions


GST Council - Constitution

Chairperson – Union FM
Vice Chairperson - to be chosen amongst the Ministers of State Government
Members - MOS (Finance) and all Ministers of Finance / Taxation of each State
Quorum is 50% of total members
States - 2/3 weightage and Centre - 1/3 weightage
Decision by 75% majority
Council to make recommendations on everything related to GST including laws, rules and rates etc.


Seven meetings of the GSTC, which has been notified w.e.f. 12th September, 2016,  under Article 279A of the Constitution.

The following decisions have been taken by GSTC:

(i) The threshold exemption limit would be Rs. 20 lakh. For special category States enumerated in Article 279A of the Constitution, threshold exemption limit has been fixed at Rs. 10 lakh.

 (ii) Composition threshold shall be Rs. 50 lakh. Composition scheme shall not be available to service providers and manufacturers (except of notified goods).

(iii) Existing tax incentive schemes of Central or State governments may be continued by respective government by way of reimbursement through budgetary route. The schemes, in the present form, would not continue in GST.

(iv) There would be four tax rates namely 5%, 12%, 18% and 28%. Besides, some goods and services would be under the list of exempt items. Rate for precious metals is yet to be fixed. A cess over the peak rate of 28% on luxury and sin goods would be imposed for a period of five years to compensate States for any revenue loss on account of implementation of GST. The Council has asked the Committee of officers to fit various goods and services in these four slabs keeping in view the present incidence of tax.

(v) The Draft CGST law and draft SGST law has been broadly approved.

In the last meeting (17th) of GSTC  held on June 11, 2017 tax rates on 66 items, including agarbatti, packaged food and insulin, were lowered.

Friday, 30th Jun 2017, 07:34:44 PM

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