Key Concepts & Self-Assessment15 Key Facts
Review key Goods & Services Tax (GST): GST Council, Tax Architecture & Reforms exam facts and rate your mastery to track revision.
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#1
The 101st Constitutional Amendment Act, 2016 introduced the Goods and Services Tax regime across India, effective July 1, 2017.
#2
The Vijay Kelkar Task Force on FRBM in 2003 first proposed replacing multiple cascading indirect taxes with a unified nationwide Goods and Services Tax.
#3
Article 246A grants simultaneous legislative powers to Parliament and State Legislatures to make laws governing goods and services tax.
#4
Article 269A mandates that GST on inter-state supplies (IGST) shall be levied and collected by the Union Government and apportioned between Union and States.
#5
Article 279A authorized the President of India to constitute the GST Council within sixty days of the commencement of the 101st Amendment Act.
#6
The GST Council is chaired by the Union Finance Minister, with Union Minister of State for Finance and State Finance Ministers serving as members.
#7
In GST Council voting, the Central Government commands one-third (33.33%) of total votes cast, while all State Governments jointly command two-thirds (66.67%).
#8
Any resolution or decision of the GST Council requires approval by a three-fourths (75%) weighted majority of the members present and voting.
#9
A quorum of fifty percent of the total number of constitutional members is required to conduct any official meeting of the GST Council.
#10
India implemented a dual GST model where Central GST (CGST) and State GST (SGST) apply concurrently on intra-state supplies of goods and services.
#11
The Goods and Services Tax Network (GSTN) operates as the technological backbone under Section 8 of the Companies Act 2013 managing registration and IT infrastructure.
#12
The Goods and Services Tax (Compensation to States) Act 2017 provided compensation to states for revenue loss for five years, financed by a compensation cess on demerit goods.
#13
Standard GST rates are structured across five primary tax tiers: zero rate (0%), 5%, 12%, 18%, and 28% for luxury and demerit goods.
#14
Alcohol for human consumption is constitutionally excluded from GST under Article 366(12A), remaining subject to State Excise Duties and State VAT.
#15
Five petroleum products—crude oil, diesel, petrol, natural gas, and aviation turbine fuel—are temporarily outside GST until the GST Council recommends their date of inclusion.
Subject Specialist Commentary
Analytical perspective & practical exam advice from the Master10 academic board
Introduced nationwide on July 1, 2017, through the 101st Constitutional Amendment Act, the Goods and Services Tax dismantled India's cascading indirect taxes to build a unified common market. Following recommendations dating back to the Kelkar Task Force, India adopted a dual GST system where Centre and States tax transactions simultaneously under Article 246A. To guide policies, Article 279A created the constitutional GST Council, representing cooperative federalism by bringing federal and state finance ministers together.
In UPSC Prelims and State PSC exams, voting maths and exemptions are prime question zones. A frequent trap surrounds decision thresholds: GST Council resolutions require a three-fourths (75%) majority, where the Centre wields one-third voting weight and all states combined hold two-thirds. Remember that alcohol for human consumption is constitutionally excluded from GST under Article 366(12A), while five petroleum products remain temporarily outside the tax net awaiting Council recommendation.
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