The 57th GST Council meeting chose stability over rate changes and eased criminal provisions under GST. This note covers the 57th GST Council decisions and the constitutional structure of the Council.
Why in News?
The 57th GST Council met under the chairmanship of Union Finance Minister Nirmala Sitharaman.
It made no changes to GST rates and decided to review rates only once a year.
57th GST Council: Key Facts for Prelims
- Annual rate review: rate decisions will be taken once a year, giving businesses predictability.
- Prosecution threshold for criminal action raised from Rs 1 crore to Rs 5 crore of tax evaded.
- The Council also recommended removing arrest powers of tax officers – part of decriminalising GST.
- GST Council is a constitutional body under Article 279A, inserted by the 101st Constitutional Amendment Act, 2016.
- Chairperson: Union Finance Minister; Vice-Chairperson: chosen by state ministers from among themselves.
- Members: Union MoS for Revenue/Finance and the Finance/Taxation Minister (or a nominated minister) of each state.
Voting and quorum
- Centre holds one-third of the weighted votes; states together hold two-thirds.
- Decisions need a majority of not less than three-fourths of the weighted votes of members present and voting.
- Quorum: one-half of the total members.
- Effect: neither the Centre alone nor the states alone can push a decision through.
Related GST provisions
- Article 246A gives both Parliament and state legislatures power to levy GST; Article 269A covers IGST on inter-state supplies.
- GST was rolled out on 1 July 2017; GSTN runs the IT backbone and the GST Appellate Tribunal hears appeals.
- In Mohit Minerals (2022), the Supreme Court held that GST Council recommendations are persuasive, not binding.
Quick Revision Table: 57th GST Council
| Point | Detail |
|---|---|
| Meeting | 57th GST Council |
| Chairperson | Union Finance Minister |
| Rate changes | None |
| Rate review frequency | Once a year |
| Prosecution threshold | Raised from Rs 1 crore to Rs 5 crore |
| Constitutional basis | Article 279A (101st Amendment, 2016) |
| Vote share | Centre 1/3, States 2/3 |
| Decision rule | 3/4 of weighted votes present and voting |
Trap / Confusing Points: 57th GST Council
| Confusion | Correct Position |
|---|---|
| GST Council is a statutory body | No – constitutional, under Article 279A |
| Decisions need a simple majority | No – three-fourths of weighted votes present and voting |
| Centre holds half the votes | No – one-third; states two-thirds |
| Council recommendations bind Parliament and states | No – persuasive value only (Mohit Minerals, 2022) |
5 Practice MCQs on 57th GST Council
1. The GST Council is constituted under which Article?
a. Article 246A
b. Article 269A
c. Article 279A
d. Article 280
Ans: C
Explanation: Article 279A, inserted by the 101st Amendment.
2. At the 57th GST Council, the threshold for criminal prosecution was raised to:
a. Rs 2 crore
b. Rs 3 crore
c. Rs 5 crore
d. Rs 10 crore
Ans: C
Explanation: It was raised from Rs 1 crore to Rs 5 crore.
3. What share of weighted votes does the Centre hold in the GST Council?
a. One-fourth
b. One-third
c. One-half
d. Two-thirds
Ans: B
Explanation: Centre one-third, all states together two-thirds.
4. A decision of the GST Council requires a majority of:
a. Simple majority
b. Two-thirds
c. Three-fourths of weighted votes present and voting
d. Unanimity
Ans: C
Explanation: At least 75% of weighted votes of members present and voting.
5. The Vice-Chairperson of the GST Council is:
a. Union MoS Finance
b. Chosen by state ministers from among themselves
c. Nominated by the President
d. Chairman of CBIC
Ans: B
Explanation: State members elect the Vice-Chairperson.
Exam tip: For the 57th GST Council, remember ‘no rate change, yearly review, Rs 5 crore threshold’; for static, revise Article 279A voting arithmetic.
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