Economy

GST in India Explained: Council, CGST, IGST

The Goods and Services Tax (GST) is a destination-based indirect tax on the supply of goods and services, introduced in India on 1 July 2017 through the 101st Constitutional Amendment Act, 2016. It replaced many central and state taxes with a dual structure: the Centre and states both levy it on the same transaction.

Last reviewed 2026-10-15

Structure of GST

CGST: levied by the Centre on intra-state supply.
SGST: levied by the state on intra-state supply.
IGST: levied by the Centre on inter-state supply and imports, and shared with the destination state.
UTGST: levied in Union Territories without a legislature.

GST Council

Constitutional body under Article 279A, inserted by the 101st Amendment.
Chaired by the Union Finance Minister, with the Union Minister of State for Finance and the finance ministers of states as members.
Decisions need at least three-fourths of the weighted votes. The Centre holds one-third of the weight and all states together hold two-thirds.
It recommends tax rates, exemptions, thresholds and special provisions.

Points to remember

Alcohol for human consumption is outside GST. Some petroleum products were kept outside it initially.
Rate slabs are revised by the GST Council from time to time, so check the latest slabs in current affairs.
GST is destination-based, meaning revenue goes mainly to the state where goods or services are consumed.

Frequently asked questions

When was GST launched in India?

On 1 July 2017.

Which article establishes the GST Council?

Article 279A, inserted by the 101st Constitutional Amendment Act, 2016.

Who chairs the GST Council?

The Union Finance Minister.