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Consider the following statements.
  1. As a mark of cooperative federalism, the GST Council shall, unanimously or through a majority of 75% of weighted votes, decide on all matters pertaining to GST and recommend such decisions to the Union and State governments.
  2. The recommendations of the GST Council are not binding on either the Union or the States Governments.
Which of the above statements is/are correct?
  • a)
    1 only 
  • b)
    2 only 
  • c)
    Both 1 and 2 
  • d)
    Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements. As a mark of cooperative federalism...
The correct answer is option 'C' - Both 1 and 2.

Explanation:
1. The first statement is correct. As a mark of cooperative federalism, the GST Council has been constituted under Article 279A of the Constitution. The Council consists of the Union Finance Minister (as the Chairperson), the Union Minister of State for Finance, and the Finance Ministers of all the States and Union territories with legislatures. The Council is responsible for making decisions on all matters related to the Goods and Services Tax (GST). These decisions are taken either unanimously or through a 75% majority of weighted votes. This provision ensures that both the Union and State governments have a say in the decision-making process, promoting cooperative federalism.

2. The second statement is incorrect. The recommendations of the GST Council are binding on both the Union and State governments. Once the Council decides on a matter related to GST, it recommends its decision to the Union and State governments. The Council's recommendations are then discussed by the Union and State governments, and a final decision is taken accordingly. The decisions of the GST Council are considered as law and are binding on all the stakeholders involved.

In summary, the GST Council plays a crucial role in the decision-making process related to GST. Its decisions are made through a cooperative federalism approach, ensuring the participation of both the Union and State governments. The Council's recommendations carry significant weight and are binding on all the stakeholders. Therefore, both statements 1 and 2 are correct.
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Community Answer
Consider the following statements. As a mark of cooperative federalism...
The Supreme Court of India has ruled that, The recommendations of the GST Council are not binding on either the Union or the States.
Article 279A stipulates the creation of the GST Council and its functions. The Council has to function as a platform to bring the Union and State governments together, and as a mark of cooperative federalism, the Council shall, unanimously or through a majority of 75% of weighted votes, decide on all matters pertaining to GST and recommend such decisions to the Union and State governments. 
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Consider the following statements. As a mark of cooperative federalism, the GST Council shall, unanimously or through a majority of 75% of weighted votes, decide on all matters pertaining to GST and recommend such decisions to the Union and State governments. The recommendations of the GST Council are not binding on either the Union or the States Governments.Which of the above statements is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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