Which constitutional body in India is responsible for recommending the vertical and horizontal distribution of tax revenues between the Union and the States?

💡 Solution & Explanation

The Finance Commission is a constitutional body set up under Article 280 every five years by the President of India to recommend tax devolution formulas between the Centre and States. GST Council handles indirect tax rate structures and exemptions rather than general tax devolution. The erstwhile Planning Commission was replaced by NITI Aayog. Finance Commission recommendations ensure fiscal federal balance and address developmental disparities across states.