The GST Council plays a crucial role in overseeing the implementation and regulation of the Goods and Services Tax (GST) in India. Its primary purpose is to ensure a cohesive tax structure across the country, addressing various issues related to GST compliance and policy. The Council meets regularly to discuss and make decisions about GST rates, exemptions, and compliance measures. By bringing together finance ministers from both the Central and State governments, the Council promotes a collaborative approach to tax governance, which is essential for adapting to the evolving economic landscape.

During the 55th GST Council meeting held in Jaisalmer on December 21, 2024, significant changes were introduced to the Invoice Management System (IMS). One notable decision was that form GSTR-3B can only be submitted after form GSTR-2B is available, which aims to enhance compliance and transparency in tax submissions. Additionally, the Council provided clarifications on GST rates for various items, including popcorn and used Electric Vehicles. These changes reflect the Council's commitment to improving the GST framework and addressing taxpayer concerns.

The GST Council significantly impacts compliance for businesses by setting regulations and guidelines that they must follow. For instance, during the 54th GST Council meeting, discussions focused on expanding e-invoicing for Business-to-Consumer (B2C) transactions and establishing deadlines for new ledger declarations on the GST portal. Compliance becomes easier as the Council works to streamline processes and reduce the burden on taxpayers. By keeping informed about the Council's recommendations and changes, businesses can adjust their practices to ensure they meet the necessary compliance requirements efficiently.

The GST Council is chaired by the Union Finance Minister, currently Smt. Nirmala Sitharaman. The Council also includes the Union Minister of State for Revenue and finance ministers from all states, which promotes an inclusive and collaborative environment for tax governance. This structural framework is designed to represent both the Central and State governments, ensuring that various perspectives are considered when making decisions about GST regulations. This diverse representation helps refine tax policies that cater to the needs of different stakeholders across the country.

The GST Council is responsible for providing essential recommendations regarding the inclusion of goods and services under GST, tax rates, exemptions, and compliance measures. Some of the key areas covered by the Council include defining the place of supply for goods and services, establishing thresholds for GST applicability, and setting special rates to address natural disasters. These recommendations are vital for maintaining a structured tax system and ensuring that GST regulations remain relevant and effective in response to changing economic conditions.

The GST Council has evolved significantly since its establishment following the launch of GST in 2017. Originally intended to manage the transition to a unified tax system, the Council has since taken on a more dynamic role, addressing compliance issues, adjusting tax rates, and introducing innovative measures such as e-invoicing. Recent meetings highlight the Council's responsiveness to the needs of businesses and the economy, showing a commitment to refining regulations to promote transparency and efficiency. As the economic landscape changes, the Council continues to adapt its strategies to ensure effective tax governance.