Economics • Indian EconomyEasy
What is the core mandate of the 'Goods and Services Tax (GST) Council' established under Article 279A of the Indian Constitution?
A. To make recommendations to the Union and State Governments on tax rates, exemptions, thresholds, and administrative modalities related to GST.✓ Correct Answer
B. To adjudicate tax disputes between the Central Board of Direct Taxes and taxpayers.
C. To audit the collection efficiency of customs duties at major ports.
D. To determine the annual allocation of tax devolution from the Consolidated Fund of India to states.
💡 Solution & Explanation
Article 279A of the Indian Constitution provides for the establishment of the Goods and Services Tax Council as a joint forum of the Centre and the States to make recommendations on tax rates, exemptions, and thresholds. It operates under the chairpersonship of the Union Finance Minister with state finance ministers as members to maintain cooperative federalism in indirect taxation.
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