Economics • Indian EconomyHard
How does the Goods and Services Tax Council function within the cooperative federalism framework of India?
A. It is an advisory body chaired by the Union Prime Minister with exclusive legislative authority
B. It is a constitutional body established under Article 279A comprising Union and State representatives to make tax recommendations✓ Correct Answer
C. It operates as an autonomous regulatory tribunal handling corporate tax evasion disputes
D. It functions as an executive wing of the Reserve Bank of India managing indirect tax collections
💡 Solution & Explanation
Article 279A of the Constitution establishes the GST Council as a constitutional body chaired by the Union Finance Minister, with state finance ministers as members, to recommend tax rates, exemptions, and thresholds. It embodies cooperative federalism by giving states voting weight in national indirect taxation policy. Judicial tribunals handle tax evasion disputes rather than the Council itself. Executive tax collection is managed by central and state revenue departments.
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