Goods and Services Tax (GST) Council

The GST Council was established under the Goods and Services Tax Act, 2016 to manage India’s unified indirect tax system. It brings together the Union Finance Minister and the finance ministers of all states to make decisions on tax rates, exemptions, and policies. The Council was created to replace a complex system of multiple taxes and to simplify tax administration across the country.

Its vision is to build a single, integrated national market with simplified and transparent tax procedures. The mission of the Council includes ensuring a fair distribution of tax revenues between the Centre and the states while promoting economic growth. The Council works on a consensus basis, balancing the interests of both the Union and the states. For example, adjustments in GST rates for sectors like automobiles have been coordinated by the Council in response to economic challenges.

In addition to setting tax rates, the GST Council monitors implementation and resolves inter-state disputes. Its comprehensive role has significant implications for businesses and consumers, making it a critical body in India’s economic governance.