Polity & Governance Practice Question›› General Studies ››
Indian Economy
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Goods and Services Tax (GST) Council
M
Question 1
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Which of the following statements regarding the objectives of the GST Council is not correct?
(a) It aims to minimise tax rate disparities among states.
(b) It ensures that indirect taxation remains a subject of exclusive central control.
(c) It seeks to promote cooperative federalism.
(d) It is responsible for ensuring that the GST regime does not lead to excessive compliance.
Explanation Statement 1 is correct: The GST Council aims to establish a uniform tax structure by reducing inconsistencies in tax rates across states. Thus creating a harmonised tax structure.
Statement 2 is not correct: GST follows a dual structure where both the Centre and States have taxation powers, and the GST Council ensures shared decision-making rather than exclusive central control.
Statement 3 is correct: The GST Council embodies the principle of cooperative federalism by including representatives from both the Union and State governments in tax policy decisions.
Statement 4 is correct: One of the objectives of the GST Council is to simplify tax compliance by reducing bureaucratic hurdles and ensuring that businesses, especially small enterprises, do not face excessive administrative burdens under GST.
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