Economics • Indian EconomyMedium
What is the core mandate of the Goods and Services Tax Council established under Article 279A of the Indian Constitution?
A. To recommend tax rates, exemptions, thresholds, and model laws governing the levy across the country✓ Correct Answer
B. To adjudicate financial disputes between commercial banks and corporate borrowers
C. To audit annual expenditures incurred by central government ministries on infrastructure
D. To fix the statutory borrowing limits of state governments under the Fiscal Responsibility framework
💡 Solution & Explanation
Article 279A empowers the President to constitute the Goods and Services Tax Council as a joint forum of the Centre and the States to make recommendations on tax rates, cess allocations, exemptions, and dispute resolution mechanisms. Chaired by the Union Finance Minister, it embodies cooperative federalism in fiscal administration. Decisions require a weighted majority vote of its members.
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