Full Timeline of GST Council Meetings: Role, Agenda and Outcomes

The GST Council was established in September 2016 as part of the 101st Constitutional Amendment Act, marking a monumental shift in India’s taxation system. Prior to GST, the Indian tax landscape was fragmented, with multiple indirect taxes levied at various levels of government. The primary goal of creating the GST Council was to simplify this structure and introduce a unified tax system that would make doing business across state lines easier.

• The GST Council includes representatives from both central and state governments.
• It ensures balanced decision-making and considers diverse regional interests.
• The Union Finance Minister serves as the chairperson.
• State finance ministers or representatives from the states are also members.
• Decisions in the Council require a three-fourths majority to pass.
• The central government holds one-third of the voting power.
• States collectively hold two-thirds of the voting power.

Role

The GST Council’s role is far-reaching and fundamental in ensuring uniform taxation across the country. It holds the authority to determine GST rates, exempt goods and services, and create or modify laws that ensure smooth implementation. Its broad mandate extends to resolving disputes, addressing compliance issues, and fine-tuning GST rules to adapt to the changing economy.

A crucial function of the Council is to ensure the alignment of central and state-level interests. The Indian tax system is unique in that it combines both central and state government inputs, ensuring that tax policies consider regional needs while maintaining national standards.

Additionally, the Council provides relief and support to sectors that are impacted by economic changes. For example, it can adjust tax rates to stimulate growth in specific sectors or reduce rates to provide relief during economic downturns or crises such as the COVID-19 pandemic.

Another key aspect of its role is maintaining consistency in the implementation of tax laws across the country. This is essential in reducing tax evasion and ensuring that businesses operating across multiple states face a uniform set of regulations.

Significance of Meetings

• GST Council meetings are crucial for central and state governments to shape India’s tax framework.
• These meetings address economic nuances, regional demands, and sectoral challenges.
• The Council can make swift decisions in response to economic changes, such as simplifying the filing process during GST’s early days.
• Meetings resolve disputes between the central and state governments regarding tax policies.
• They ensure no state is disproportionately impacted by taxation changes.
• The Council creates an adaptive, responsive tax system that balances revenue generation with economic growth.

Key Policy Influence

• Since 2016, the GST Council has held 54 meetings, each contributing significantly to policy decisions that shape India’s tax system.
• These meetings addressed critical issues, such as adjusting tax rates and implementing reforms to simplify business operations and compliance processes.
• A key achievement is the reduction of tax complexity by cutting down the initial four tax slabs (5%, 12%, 18%, 28%) and exempting goods/services based on industry and consumer feedback, promoting economic stability.
• The Council raised the threshold for the Composition Scheme, easing tax compliance for SMEs and allowing smaller businesses to pay reduced taxes with fewer procedural burdens, thus stimulating growth in key sectors.
• During the COVID-19 pandemic, the Council made critical decisions, including reducing tax rates on essential healthcare items (ventilators, masks, vaccines) and deferring new return filing systems, providing relief to businesses affected by the pandemic.

Full timeline of the GST Council Meetings

Meeting Number	Date	Agenda
1st Meeting	September 22-23, 2016	Formation of GST Council, setting exemption threshold.
2nd Meeting	September 30, 2016	GST Jurisdiction between states and center, compensation to states.
3rd Meeting	October 18-19, 2016	Compensation mechanism finalization.
4th Meeting	November 3-4, 2016	Finalization of tax slabs and classification of goods.
5th Meeting	December 2-3, 2016	Administrative control over small taxpayers.
6th Meeting	December 11, 2016	IT readiness and GST implementation.
7th Meeting	January 16, 2017	Draft GST laws approval.
8th Meeting	February 18, 2017	Final approval of GST laws.
9th Meeting	March 4-5, 2017	Tax jurisdiction sharing and dispute resolution.
10th Meeting	March 16, 2017	Compensation cess finalization.
11th Meeting	June 18, 2017	Finalizing tax rates for various goods and services.
12th Meeting	August 5, 2017	Post-GST rollout compliance review.
13th Meeting	October 6, 2017	Simplification of tax filing procedures.
14th Meeting	November 10, 2017	Rate revisions on various consumer goods.
15th Meeting	December 16, 2017	Clarification on ITC claims and compliance.
16th Meeting	January 18, 2018	Bringing real estate under GST.
17th Meeting	February 10, 2018	Implementation of e-way bill for goods movement.
18th Meeting	April 4, 2018	GST relief for small businesses.
19th Meeting	June 21, 2018	Rate cuts on household and consumer goods.
20th Meeting	August 10, 2018	Compliance simplification for small businesses.
21st Meeting	September 28, 2018	Post-GST adjustments in key sectors like textiles and real estate.
22nd Meeting	October 6, 2018	GST refunds and export promotion measures.
23rd Meeting	November 10, 2018	Further GST rate rationalization.
24th Meeting	December 8, 2018	Discussion on compensation cess and revenue loss to states.
25th Meeting	January 18, 2019	Rate revisions and sector-specific GST relief measures.
26th Meeting	March 19, 2019	Post-GST compliance and revenue tracking.
27th Meeting	June 21, 2019	Introducing an e-invoicing system for large businesses.
28th Meeting	August 1, 2019	Tax rate reductions for electric vehicles (EVs).
29th Meeting	October 9, 2019	Further simplification of GST returns and e-invoicing implementation.
30th Meeting	December 18, 2019	Discussion on GST compliance deadlines and relief for industries affected by slowdown.
31st Meeting	February 18, 2020	COVID-19 pandemic response, tax rate cuts for essential goods.
32nd Meeting	April 14, 2020	Relief measures for businesses during the COVID-19 pandemic.
33rd Meeting	June 18, 2020	E-invoicing implementation and deferred deadlines.
34th Meeting	August 28, 2020	Further relief and rate reductions on healthcare items.
35th Meeting	October 16, 2020	Tax reforms for the automobile industry.
36th Meeting	December 19, 2020	Discussions on expanding e-invoicing to medium-sized businesses.
37th Meeting	February 24, 2021	Addressing state compensation beyond June 2022.
38th Meeting	April 14, 2021	COVID-19 impact and tax rate cuts on essential items.
39th Meeting	June 18, 2021	Online gaming and digital services taxation.
40th Meeting	August 17, 2021	E-commerce and digital economy taxation norms.
41st Meeting	October 18, 2021	Expanding the e-invoicing system to smaller businesses.
42nd Meeting	December 18, 2021	Discussion on electric vehicle tax reductions and incentives.
43rd Meeting	February 20, 2022	Addressing state compensation cess post-June 2022.
43rd Meeting	February 20, 2022	Addressing state compensation cess post-June 2022.
44th Meeting	April 30, 2022	GST on e-commerce operators and expanding e-invoicing.
45th Meeting	June 29, 2022	Tax relief measures for COVID-hit sectors, discussion on compensation.
46th Meeting	August 5, 2022	Discussion on tax evasion measures, tech-based compliance.
47th Meeting	September 28, 2022	GST on cryptocurrencies and digital assets.
48th Meeting	November 17, 2022	Rate revision on agricultural goods and fertilizers.
49th Meeting	February 18, 2023	Clarification on e-invoicing and input tax credit for SMEs.
50th Meeting	March 28, 2023	Gaming sector taxation and GST for online services.
51st Meeting	May 28, 2023	Online gaming tax rates and inclusion of betting services.
52nd Meeting	July 18, 2023	Tax on logistics and warehousing services.
53rd Meeting	September 5, 2023	Tax revision for molasses and sugarcane products.
54th Meeting	September 30, 2023	Healthcare sector and exemptions for cancer drugs.

GST Council Meeting Key Discussions

Meeting	Key Discussions
1st	GST exemption threshold set at ₹20 lakh for most states; structure for decision-making established.
2nd	Disagreement on jurisdiction between center and states for taxpayers with turnover under ₹1.5 crores.
3rd	Formula for compensating states for 5 years due to revenue loss after GST implementation.
4th	GST rate structure finalized with four slabs—5%, 12%, 18%, and 28%. Essential items exempted from GST.
5th	No consensus reached on sharing administrative control between center and states.
6th	Goods and Services Tax Network (GSTN) discussed for managing compliance, registration, and returns.
7th	Discussion on draft laws like CGST, SGST, IGST, and the approval of the compensation bill.
8th	Approved CGST, SGST, UTGST, and IGST laws, which were crucial for implementing GST.
9th	States and the centre reached consensus on dual control over taxpayers with turnover above ₹1.5 crores.
10th	Finalized compensation cess on luxury and sin goods to maintain state revenue.
11th	Adjusted tax rates before the July 1 GST rollout; finalized classification of various goods and services into tax slabs.
12th	Discussed compliance issues post-GST implementation, extended the deadline for filing returns for small businesses.
13th	Introduced a simplified return filing form for small businesses; made compliance easier for SMEs.
14th	Reduced GST rates on more than 200 items, including FMCG products and consumer goods.
15th	Addressed concerns regarding input tax credit (ITC) and extended compliance deadlines.
16th	Decision to defer bringing real estate under GST; no consensus reached.
17th	Approved e-way bill mechanism for tracking interstate transportation of goods.
18th	Increased the threshold for the Composition Scheme, reducing the tax burden for small businesses.
19th	Reduced GST on electronics, household appliances, and real estate items to boost consumer spending.
20th	Simplified the filing process for small businesses, introduced a quarterly return filing system for SMEs.
21st	Discussed rate adjustments for textiles and housing sectors, provided additional relief to these sectors.
22nd	Introduced a faster refund mechanism for exporters and discussed reducing the tax burden on exporters.
23rd	More consumer goods moved to lower tax slabs; revised rates for construction services and housing projects.
24th	Addressed state concerns over revenue losses and agreed to extend compensation to states.
25th	Reduced tax rates on key services and industries, including transportation and construction.
26th	Discussed measures for improving revenue collection, compliance tracking, and curbing tax evasion.
27th	Approved the introduction of e-invoicing for businesses with turnover above ₹500 crores to improve transparency and reduce tax evasion.
28th	Reduced GST on electric vehicles from 12% to 5%, promoting eco-friendly transportation.
29th	E-invoicing system to be rolled out in phases, starting with large taxpayers. Simplified return forms introduced.
30th	Extended deadlines for compliance and return filings, especially for industries hit by the economic slowdown.
31st	Reduced GST on essential items like sanitizers, masks, and other healthcare equipment in response to the pandemic.
32nd	Deferred GST compliance deadlines and offered tax filing relief to businesses struggling during the pandemic.
33rd	Extended deadlines for e-invoicing and simplified GST returns, providing further relief to businesses amid the pandemic.
34th	Reduced GST on essential medical equipment like oxygen concentrators and ventilators to address the pandemic’s needs.
35th	Proposed reducing GST on cars and car parts to stimulate the auto industry.
36th	Approved extending the e-invoicing system to businesses with turnover between ₹100 crores and ₹500 crores.
37th	States requested compensation beyond the initial 5-year period due to revenue loss; discussions continued.
38th	Further tax relief for healthcare items and essential goods during the second wave of COVID-19.
39th	Proposed taxing online gaming and digital services, addressing growing sectors in the digital economy.
40th	Discussed introducing stricter regulations and taxing norms for e-commerce platforms and digital service providers.
41st	Approved expanding e-invoicing for businesses with turnover over ₹50 crores to improve compliance.
42nd	Proposed tax incentives for electric vehicle manufacturers and further reducing GST on EV batteries.
43rd	No consensus reached; discussions
43rd	No consensus reached; discussions about extending state compensation due to revenue shortfalls after June 2022 continued.
44th	Proposed changes to how e-commerce operators are taxed and an extension of the e-invoicing system for medium-sized businesses.
45th	Agreed to extend GST relief for COVID-affected sectors, including healthcare and tourism. Compensation cess extension for states under review.
46th	Focused on implementing technology-based compliance measures to prevent tax evasion, including data analytics and AI for fraud detection.
47th	Proposed introducing a specific GST structure for digital assets, including cryptocurrencies and NFTs, though no final decision was reached.
48th	Agreed to reduce GST on fertilizers and agricultural equipment to boost the farming sector.
49th	Discussed streamlining e-invoicing rules for small and medium-sized enterprises and improving input tax credit availability for them.
50th	Proposals to standardize GST on the gaming industry, especially regarding online gaming and betting services.
51st	Considered placing online gaming and betting services under higher tax slabs; deferred decision to future meetings.
52nd	Agreed to reduce GST rates on logistic services and warehouses to support supply chain growth.
53rd	Reduced GST on molasses and related products to support the agricultural and sugarcane industries.
54th	Approved tax relief for cancer drugs, proposed exemptions for research services, and introduced e-invoicing pilot for B2C transactions.

Reforms Introduced by the GST Council

The GST Council has introduced several significant reforms to streamline India’s tax system and make compliance easier for businesses. One of the most notable reforms was the introduction of the Composition Scheme, aimed at reducing the tax burden for small businesses by allowing them to pay lower rates with fewer compliance requirements.

Another key reform has been the rationalization of tax rates to address industry concerns, leading to lower rates for essential goods and higher rates for luxury goods. The Council has also introduced various procedural reforms to simplify tax filing, particularly for small and medium enterprises (SMEs), and has deferred the implementation of more complex tax systems during the COVID-19 pandemic to provide relief to struggling businesses.

Additional Reforms:

• Rate Rationalization: Adjusted GST rates based on feedback from industries, reducing rates for many essential goods and services.
• E-Way Bill: Introduced to improve logistics efficiency, ensuring smoother transport of goods across states with minimal delays.
• Expansion of Input Tax Credit (ITC): Extended ITC benefits to more sectors, making it easier for businesses to claim refunds.
• Compliance Relief for MSMEs: Raised thresholds for compulsory registration and simplified tax return processes, easing compliance for smaller businesses.

Future Expectations from the GST Council

The GST Council is expected to continue evolving and addressing critical areas that will shape the future of India’s tax landscape. With discussions already underway, reforms related to digital taxation, such as cryptocurrencies and online gaming, are anticipated to be a focal point. Additionally, the Council may look at rationalizing GST slabs to simplify the tax structure further, fostering ease of business. A uniform tax rate across states may be considered to address regional discrepancies in tax administration.

Further expectations include a review of the compensation cess mechanism, especially as the five-year compensation period ends. The Council is likely to extend support for states to stabilize their revenue loss. Another area of focus will be the inclusion of more goods and services under the GST regime, such as petroleum and alcohol, which have remained outside the ambit of GST so far.

Key Points:

• Digital Taxation: Expect discussions on how to tax emerging sectors like cryptocurrencies, online gaming, and the digital economy.
• Simplification of GST Slabs: The Council may work towards reducing the number of tax slabs for easier compliance and administration.
• State Compensation Extension: There could be discussions on extending state compensation due to revenue shortfalls post-2022.
• Inclusion of Petroleum and Alcohol: Sectors like petroleum and alcohol may finally come under the GST regime, closing long-pending gaps in coverage.

Conclusion

The GST council meetings timeline highlights the pivotal role the GST Council plays in shaping India’s tax policies. From the initial formation of GST tax slabs to the recent focus on e-invoicing and healthcare exemptions, these meetings have had a lasting impact on India’s economic and fiscal environment. The GST Council’s journey showcases how adaptive and responsive the Indian tax system has been to the changing needs of the economy. As the Council moves forward, it will continue to introduce reforms that address the challenges of a rapidly evolving economic landscape.

Disclaimer: *This article is for information only. For more details please visit the official GST website or consult with a GST practitioner or CA or tax consultant for professional advice.