All questions of Goods and Services Tax Council for UPSC CSE Exam

How are decisions made in the GST Council?
a)
All decisions require a unanimous vote.
b)
A simple majority vote is sufficient.
c)
A two-thirds majority vote is required.
d)
The Union government's vote alone decides.
Correct answer is option 'C'. Can you explain this answer?

Ankita Sarkar answered

The decision-making process in the GST Council involves several steps and requires a two-thirds majority vote. The GST Council is a constitutional body that consists of representatives from both the central and state governments. It is responsible for making important decisions related to the Goods and Services Tax (GST) in India.

1. Composition of the GST Council:
- The GST Council is chaired by the Union Finance Minister and includes the Minister of State for Finance and the finance ministers of all the states and union territories with legislatures.
- The central government holds one-third of the votes, while the states collectively hold two-thirds of the votes.

2. Decision-Making Process:
- All decisions in the GST Council are made by voting. Each member has one vote. The voting can be done either in person or through a proxy.
- The decisions are made based on a two-thirds majority, which means that at least 75% of the weighted votes need to be in favor of a particular decision.
- This ensures that decisions are taken in a democratic and consensus-based manner, taking into account the views and interests of both the central and state governments.

3. Weightage of Votes:
- The votes of the central government have a weightage of one-third of the total votes cast, while the votes of the state governments collectively have a weightage of two-thirds.
- This weightage system ensures that the central government's vote alone does not have the power to decide the outcome of a decision. It gives a higher weightage to the states, reflecting the federal nature of the GST framework.

4. Role of the Chairperson:
- The Chairperson, who is the Union Finance Minister, plays a crucial role in the decision-making process. They preside over the meetings, maintain order, and facilitate discussions.
- While the Chairperson does not have a casting vote, their role is significant in guiding the discussions, seeking consensus, and ensuring that all members have an opportunity to express their views.

In conclusion, the decision-making process in the GST Council requires a two-thirds majority vote, with the central government and state governments collectively holding the voting power. This ensures that decisions are made in a democratic and inclusive manner, taking into account the interests of both the central and state governments.

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What is the quorum for meetings of the GST Council?
a)
One-third of the total number of members.
b)
One-half of the total number of members.
c)
Two-thirds of the total number of members.
d)
All members must be present.
Correct answer is option 'B'. Can you explain this answer?

Ujwal Unni answered

Explanation:

b) One-half of the total number of members:
- The quorum for meetings of the GST Council is one-half of the total number of members.
- This means that at least half of the total members need to be present for the meeting to be valid and decisions to be taken.
- The GST Council is a constitutional body formed to make recommendations to the Union and State government on issues related to Goods and Services Tax.
- It is chaired by the Union Finance Minister and includes the Union Minister of State in charge of Revenue or Finance and the Minister in charge of Finance or Taxation or any other Minister nominated by each state government.
- The quorum ensures that decisions taken by the Council have the necessary support and representation from the members.
- This requirement helps in ensuring that important decisions related to GST are not made without adequate representation and discussion.
- Having a quorum also helps in maintaining the integrity and legitimacy of the decisions taken by the Council.
This explanation clarifies why the correct answer is option 'b', one-half of the total number of members.

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Who chairs the Goods and Services Tax (GST) Council in India?
a)
The Minister of State for Finance.
b)
The Minister of State for Commerce.
c)
The Union Finance Minister.
d)
The Prime Minister.
Correct answer is option 'C'. Can you explain this answer?

Lakshya Ias answered

The GST Council in India is chaired by the Union Finance Minister.

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What is the guiding principle for the GST Council while discharging its functions?
a)
Promoting individual state interests.
b)
Ensuring a harmonized national market for goods and services.
c)
Maximizing tax revenue for the central government.
d)
Implementing uniform tax rates across all states.
Correct answer is option 'B'. Can you explain this answer?

Capstone Ias Learning answered

The guiding principle for the GST Council while discharging its functions is to ensure a harmonized national market for goods and services

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Who is the permanent invitee (non-voting) to all proceedings of the GST Council?
a)
The Prime Minister.
b)
The Secretary of Revenue.
c)
The Chairperson of the GST Council.
d)
The Chief Minister of the largest state.
Correct answer is option 'B'. Can you explain this answer?

Spectrum Coaching Institute answered

The Chairperson of the Central Board of Excise and Customs (CBEC) is the permanent invitee (non-voting) to all proceedings of the GST Council.

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What is the composition of the GST Council?
a)
It consists of only Union government officials.
b)
It consists of Union and State government officials.
c)
It consists of State government officials only.
d)
It consists of members appointed by the President.
Correct answer is option 'B'. Can you explain this answer?

BT Educators answered

The GST Council consists of members from both the Union and State governments.

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What is the primary function of the GST Council?
a)
To prepare the national budget.
b)
To recommend changes in income tax rates.
c)
To make recommendations on issues related to Goods and Service Tax.
d)
To regulate foreign trade.
Correct answer is option 'C'. Can you explain this answer?

BT Educators answered

The primary function of the GST Council is to make recommendations on issues related to Goods and Service Tax (GST).

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What was the date when the Constitution (One Hundred and First Amendment) Act, 2016, which introduced the Goods and Services Tax, received the President's assent?
a)
3rd August, 2016.
b)
8th August, 2016.
c)
8th September, 2016.
d)
10th September, 2016.
Correct answer is option 'C'. Can you explain this answer?

Future Foundation Institute answered

The Constitution (One Hundred and First Amendment) Act, 2016, which introduced the Goods and Services Tax, received the President's assent on 8th September, 2016.

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What is the purpose of establishing a mechanism for dispute resolution by the GST Council?
a)
To resolve disputes between political parties.
b)
To settle disputes between state governments.
c)
To address conflicts between central and state governments.
d)
To adjudicate disputes between trade unions.
Correct answer is option 'C'. Can you explain this answer?

Capstone Ias Learning answered

The mechanism for dispute resolution established by the GST Council is primarily meant to address disputes between the central and state governments.

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What is the primary responsibility of the GST Council with regard to petroleum and natural gas?
a)
To set market prices for these commodities.
b)
To recommend the date on which GST should be levied on them.
c)
To regulate their production and distribution.
d)
To exempt them from all taxes.
Correct answer is option 'B'. Can you explain this answer?

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