GST Council, chaired by Union Finance Minister with state representatives, has undertaken significant rate rationalisation since 2017. Recent decisions include reducing tax slabs from four to three, exempting essential items, and standardising rates across sectors. FY2024 GST revenue reached ₹20.18 lakh crore, showing 11.7% growth. Key reforms include simplified return filing, e-invoicing mandate, and compensation cess extension. Council's 50th meeting focused on streamlining compliance and addressing revenue shortfalls in certain states.

GST Council operates as India's federal tax coordination body, making rate and policy decisions through consensus-based voting where Centre holds one-third weightage and states collectively two-thirds. Rate rationalisation aims to reduce compliance burden while maintaining revenue adequacy. The shift from multiple tax slabs to simplified structure addresses cascading effects and input tax credit complications that plagued the pre-GST regime. Revenue trends show initial volatility post-2017 implementation, followed by steady growth as compliance improved and economic activity recovered post-COVID. The Council's decisions significantly impact fiscal federalism, as states surrendered taxation powers for promised compensation until 2022. Current focus includes bringing petroleum products and electricity under GST ambit, addressing inverted duty structure in sectors like textiles, and enhancing digital infrastructure for seamless compliance. These decisions directly influence inflation, business costs, and Centre-state financial relations, making GST Council's role crucial for India's tax policy effectiveness.