Key takeaways
What this article covers, in order:
- What is the GST Council?
- Why it matters for your business
- A quick example
- How HelloBooks helps
- Frequently asked questions
Every rate change you read about starts here. Here is a plain-English explanation for Indian business owners.
What is the GST Council?
The GST Council is the constitutional body that sets GST rates, rules and exemptions for the whole country.
GST in India is a destination-based tax split into CGST and SGST for sales within a state and IGST for inter-state sales. Following the rate overhaul effective 22 September 2025, most goods and services sit in a simplified two-slab structure (5% and 18%), with a higher 40% rate reserved for a short list of luxury and "sin" items, and essentials kept exempt.
Why it matters for your business
Understanding the GST Council keeps your invoices compliant, protects your input tax credit, and avoids notices from the department. It is the difference between a clean GSTR-9 and a reconciliation headache.
- Chaired by the Union Finance Minister with all state finance ministers.
- Decides rate slabs, exemptions and procedural rules.
- Its recommendations drive the notifications you must follow.
A quick example
The two-slab rate structure effective 22 September 2025 came from a GST Council decision, then flowed into CBIC notifications.
How HelloBooks helps
This is where cloud accounting software like HelloBooks saves hours. HelloBooks is free GST accounting software for Indian businesses: you can raise GST-compliant invoices with the correct HSN or SAC code, track input tax credit against your GSTR-2B, and file unlimited GSTR-1 and GSTR-3B returns from one dashboard.
- GST-ready invoicing with automatic CGST / SGST / IGST split and HSN or SAC codes.
- GSTR-2B reconciliation so you only claim the input tax credit you are actually entitled to.
- GSTR-1 and GSTR-3B filing free, with GSTR-9 generated ready to file and e-invoicing on higher plans.
- Due-date reminders so a late fee never catches you by surprise.
Thousands of founders, freelancers and accountants in India run their books on HelloBooks — you can start free, with no credit card.
Frequently asked questions
What exactly is the GST Council in GST?
The GST Council is the constitutional body that sets GST rates, rules and exemptions for the whole country.
Is this the same across all Indian states?
GST is a national law, so the core rules are the same across India, but the state (SGST) half of the tax and your jurisdictional office depend on the place of supply.
Does HelloBooks handle this automatically?
Yes — HelloBooks applies the correct treatment on every invoice and carries it through to your GSTR-1 and GSTR-3B so you do not have to calculate it by hand.
