Economics • Indian EconomyHard
In the context of the institutional framework for cooperative federalism in India, what is the precise constitutional and legal status of the Goods and Services Tax (GST) Council established under Article 279A?
A. It is a constitutional federal body chaired by the Union Finance Minister with state finance ministers as members, designed to make recommendations on tax rates, exemptions, and thresholds✓ Correct Answer
B. It is a statutory corporate advisory board operating under the administrative control of the Reserve Bank of India without voting powers for state representatives
C. It is an executive inter-state council convened exclusively by the Prime Minister without statutory backing or tax-making powers
D. It is a judicial tribunal empowered to adjudicate tax evasion disputes between corporate entities and municipal bodies
💡 Solution & Explanation
Inserted via the 101st Constitutional Amendment Act, Article 279A establishes the GST Council as a constitutional joint forum consisting of the Union Finance Minister and state finance ministers to deliberate and recommend uniform tax structures, rates, and thresholds across the nation. It functions as a cooperative federal institution rather than a judicial tribunal or central bank subsidiary. Decisions require a weighted majority vote of members present.
More Economics Indian Economy questions
- Which flagship social security and welfare scheme implemented by the central government is heavily utilized…
- What is the primary purpose of the Production Linked Incentive scheme introduced by the Government of India…
- What is the primary objective of the Mahatma Gandhi National Rural Employment Guarantee Act in India?
- What is the primary function of 'NITI Aayog' (National Institution for Transforming India)?
- What is the primary focus of the 'Production Linked Incentive (PLI) Scheme 2.0' for IT Hardware introduced by…