As we all know the historic date i.e. 1st July 2017 on which the Goods and Services Tax (GST) was introduced in India. But, one would be astonished to note that the stepping stone for GST was laid down way back in the year 2000.
The present article briefly covers the history of introduction of GST in India and also covers major recommendation of GST council meeting leading to successful implementation of GST in India.
Introduction of GST [timeline from discussion to enactment] –
In order to understand the history of GST, it is important to understand various timelines which are the basis for the introduction of GST in India. The timeline is tabulated hereunder –
| Year | Particulars | Details |
| 2000 | First discussion | Government led by Shri Atal Bihari Vajpayee initiated first discussion for adopting GST in India. |
| 2004 | Formation of committee | An Empowered Committee comprising of the State Finance Ministers was set up. Basically, the committee was formed to develop GST framework and also to address State concerns. |
| 2006 | Budget proposal | Finance Minister, Shri P.Chidambaram, in his budget speech, proposed GST implementation by 1st April 2010. |
| 2009 | First discussion paper on GST | Empowered Committee released the first discussion paper on GST. |
| 2011 | Introduction of Constitution Amendment Bill | Constitution (115th Amendment) Bill, 2011 was introduced in Lok Sabha to enable levy of GST in India. Later on the said bill got lapsed. |
| 2014 | Passing of Constitution Amendment Bill | Constitution (122nd Amendment) Bill, 2014 was re-introduced in Lok Sabha. |
| 2016 | Passing of Bill and formation of GST Council | Constitutional Amendment Bill was passed by both Lok Sabha and Rajya Sabha. Leading to Presidential assent, by Shri Pranab Mukherjee. Accordingly, Constitution (101st Amendment) Act, 2016 was notified on 8th September 2016.
In the same year, GST Council was formed for finalisation of GST rates and regulations. |
| 2017 | Enactment of GST in India | Finally, on 1st July 2017, GST got enacted in India vide the following Acts –
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Major recommendation of GST Council leading to implementation of GST –
GST Council plays a vital role in modelling the GST framework in India. GST Council consists of the Finance Minister of India as well as representative from each States and Union Territories of India.
Till date, in total, 53 GST Council Meetings are held wherein decisions with regard to various aspects of GST i.e. tax rates; exemptions; administrative procedures are taken.
Prior to introduction of GST, 18 GST Council Meetings were held. Highlighting hereunder some of the important GST Council Meeting which formed the basis for introduction of GST in India –
| GST Council Meeting Number and Date | Major Recommendation |
| 1st GST Council Meeting held on 22nd and 23rd September 2016 | It was agreed to implement GST on 1st April 2017. |
| 2nd GST Council Meeting held on 30th September 2016 | Recommended draft GST rules on registration; return; refund; payment and invoice. |
| 4th GST Council Meeting held on 3rd and 4th November 2016 | Proposed GST tax slabs i.e. 0%, 5%, 12%, 18% and 28%. |
| 10th GST Council Meeting held on 18th February 2017 | Approval of Draft Compensation Law and approval of legal provisions in Model GST Law. |
| 11th GST Council Meeting held on 4th March 2017 | Approval of Draft Central Goods and Services Tax Law (CGST) and approval of draft Integrated Goods and Services Tax Law (IGST). |
| 12th GST Council Meeting held on 16th March 2017 | Approval of Draft Model of State Goods and Services Tax Law (SGST) and approval of draft Union Territory Goods and Services Tax Law (UTGST). |
| 13th GST Council Meeting held on 31st March 2017 | Approval of the Draft GST rules on Input Tax Credit; Valuation; Transitional Provisions and Composition. |
| 14th GST Council Meeting held on 18th and 19th May 2017 | Rate of tax to be collected at source u/s. 52 of the Central Goods and Services Tax Act, 2017 and u/s. 20 of the Integrated Goods and Services Tax Act, 2017.
Rate of interest for delayed payment of tax. |
| 16th GST Council Meeting held on 11th June 2017 | Rate adjustment on the basis of representation received from Trade & industry. |
Major recommendation of GST Council leading to successful implementation of GST –
| GST Council Meeting Number and Date | Major Recommendation |
| 20th GST Council Meeting held on 5th August 2017 | Approval of e-way bill system. |
| 21st GST Council Meeting held on 9th September 2017 | Transitional provisions and filing of Form GST TRAN-1 |
| 23rd GST Council Meeting held on 10th November 2017 | Tax structure of different categories of restaurant |
| 24th GST Council Meeting held on 16th December 2017 | Introduction of e-way bill with effect from 1st January 2018 |
| 28th GST Council Meeting held on 21st July 2018 | GST for various items [like paints, varnishes, putty, mixer, juicer, cleaner, refrigerator, water heater, special purpose vehicles, work truck, trailers, certain equipment of industrial use] reduced from 28% to 18%. |
| 33rd GST Council Meeting held on 20th and 24th February 2019 | Recommended GST rates on Real Estate as under –
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| 34th GST Council meeting held on 19th March 2019 | Rates of GST on real estate revised to 1% without Input Tax Credit on construction of affordable houses and 5% without Input Tax Credit on other construction. |
| 38th GST Council meeting held on 18th December 2019 | Issue concerning GST on lottery and one time amnesty scheme for filing return in Form GSTR-1. |
| 39th GST Council meeting held on 14th March 2020 | Scheme of Know Your Supplier and reduction in GST rates of MRO services. |
| 40th GST Council meeting held on 12th June 2020 | One-time amnesty scheme to clean up all pendency in GST return filing. |
| 42nd GST Council meeting held on 5th October and 12th October 2020 | Approval to the Quarterly Return and Monthly Payment Scheme (QRMP) to be made available from 1st January 2021. |
| 44th GST Council meeting held on 12th June 2021 | GST rates reduces for specified items which are being used in COVID-19 relief and management. |
| 49th GST Council meeting held on 18th February 2023 | GST rates of Rab reduced from 18% to 5% or NIL and GST rates of pencil sharpener reduced from 18% to 12%.
Time limit for application for revocation of cancellation of registration increased from 30 to 90 days. |
| 50th GST Council meeting held on 11th July 2023 | 28% GST for Casino; horse racing and online gaming.
GST rates of Uncooked; unfried and extruded snack palettes LD slag, fish soluble paste and imitation zari thread reduced from 18% to 5%. |
| 52nd GST Council meeting held on 7th October 2023 | GST on molasses to be reduced from 28% to 5%. |
| 53rd GST Council meeting held on 22nd June 2024 | Following monetary limits recommended for filing of an appeal by department –
GST Appellate Tribunal – INR 20 Lakhs; High Court – INR 1 Crore; and Supreme Court – INR 2 Crore. |
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