Cooperative federalism bodies: GST Council, Inter-State Council
India's cooperative federalism machinery: the GST Council (Art 279A) and the Inter-State Council (Art 263), their composition, voting, and constitutional logic.
Two engines of cooperative federalism
Cooperative federalism in India rests on bodies that compel the Union and States to bargain jointly rather than legislate in isolation. Two stand out: the GST Council, a constitutional body created by the One Hundred and First Amendment Act, 2016 under Article 279A, and the Inter-State Council (ISC), established by Presidential Order on 28 May 1990 under the enabling power of Article 263.
GST Council — Article 279A
The GST Council was notified on 15 September 2016 and held its first meeting on 22–23 September 2016. It is chaired by the Union Finance Minister. Its members are the Union Minister of State for Finance and the Finance/Taxation Minister of each State (and Union Territories with legislatures). One State minister is chosen as Vice-Chairperson.
Voting is the high-yield fact. Under Article 279A(9), every decision requires a three-fourths majority of weighted votes of members present and voting. The Centre's vote carries one-third weight; all States together carry two-thirds. The quorum is one-half of total members (Article 279A(7)). This arithmetic means the Centre alone cannot pass a measure, and States cannot pass one against the Centre — a structural veto on both sides.
The Council's mandate under Article 279A(4) covers tax rates, exempted goods, model GST laws, threshold limits, special rates, and special provisions for States like the North-East and the hill States. Article 279A(11) establishes a dispute-resolution mechanism for disputes between Centre and States or among States.
A pivotal interpretation came in Union of India v. Mohit Minerals (May 2022), where the Supreme Court held that the GST Council's recommendations are persuasive, not binding on Parliament and State legislatures, since both enjoy concurrent power to legislate on GST under Article 246A. This restored emphasis on the States' fiscal autonomy.
Inter-State Council — Article 263
Article 263 empowers the President to establish a Council to (a) inquire into and advise on inter-State disputes, (b) investigate and discuss subjects of common interest, and (c) make recommendations for better policy coordination. The ISC was created on the recommendation of the Sarkaria Commission (1988).
Its composition: the Prime Minister as Chairman; Chief Ministers of all States; Chief Ministers/Administrators of UTs; and six Union Cabinet Ministers nominated by the PM. A Standing Committee (created 1996) handles continuous consultation. The ISC has met infrequently — only eleven times since 1990, with its eleventh meeting on 16 July 2016 — a recurring criticism in governance reform debates and a favoured Mains discussion point on the gap between institutional design and practice.