---
title: "GST Council & Inter-State Council Explained | Model Diplomat"
description: "Learn India's cooperative-federalism machinery: the GST Council under Article 279A and the Inter-State Council under Article 263, their composition, voting and"
url: "https://modeldiplomat.com/learn/lessons/upsc-governance-bodies-cooperative-federalism-bodies-gst-council-inter-state-council"
---

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Cooperative federalism bodies: GST Council, Inter-State Council

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# 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.

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