Economics • Indian EconomyEasy
What is the constitutional status and role of the Goods and Services Tax (GST) Council in India?
A. A constitutional body established under Article 279A to make recommendations on GST rates and rules.✓ Correct Answer
B. A statutory body under the Ministry of Finance responsible for collecting direct taxes.
C. An advisory committee appointed by the NITI Aayog to review state fiscal deficits.
D. A judicial tribunal set up to resolve tax disputes between corporations and the central government.
💡 Solution & Explanation
The Goods and Services Tax Council is a constitutional body established under Article 279A, inserted by the 101st Constitutional Amendment Act, to recommend tax rates, exemptions, and thresholds. It is chaired by the Union Finance Minister, with state finance ministers serving as members, ensuring cooperative federalism in indirect taxation. Statutory bodies or advisory committees lack this explicit constitutional footing and collective decision-making framework.
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