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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?
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What is the guiding principle for the GST Council while discharging it...
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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What is the guiding principle for the GST Council while discharging it...
Guiding Principle of the GST Council
The Goods and Services Tax (GST) Council plays a crucial role in shaping the GST regime in India. Its primary guiding principle is to ensure a harmonized national market for goods and services.
Importance of Harmonization
- Uniformity Across States: The GST Council aims to minimize discrepancies between different states regarding taxation. This uniformity helps create a seamless market where businesses can operate without the complexity of varying tax structures.
- Ease of Doing Business: A harmonized national market reduces compliance burdens on businesses. It simplifies tax administration and encourages investment by providing a clear and consistent tax framework.
- Elimination of Trade Barriers: By aligning tax rates and structures, the GST Council helps eliminate inter-state trade barriers. This promotes competition and efficiency, ultimately benefiting consumers through lower prices and greater choice.
Balancing Interests
- Federal Structure Consideration: While the GST Council considers the interests of both the central and state governments, its main focus remains on the collective economic growth of the country rather than individual state interests.
- Stakeholder Involvement: The Council includes representatives from both the central and state governments, ensuring that diverse viewpoints are considered while working towards a unified tax system.
Conclusion
In summary, the GST Council's guiding principle of ensuring a harmonized national market for goods and services underpins its efforts to create an efficient and equitable tax environment. This approach not only simplifies tax compliance but also fosters economic growth across the nation.
The Goods and Services Tax (GST) Council plays a crucial role in shaping the GST regime in India. Its primary guiding principle is to ensure a harmonized national market for goods and services.
Importance of Harmonization
- Uniformity Across States: The GST Council aims to minimize discrepancies between different states regarding taxation. This uniformity helps create a seamless market where businesses can operate without the complexity of varying tax structures.
- Ease of Doing Business: A harmonized national market reduces compliance burdens on businesses. It simplifies tax administration and encourages investment by providing a clear and consistent tax framework.
- Elimination of Trade Barriers: By aligning tax rates and structures, the GST Council helps eliminate inter-state trade barriers. This promotes competition and efficiency, ultimately benefiting consumers through lower prices and greater choice.
Balancing Interests
- Federal Structure Consideration: While the GST Council considers the interests of both the central and state governments, its main focus remains on the collective economic growth of the country rather than individual state interests.
- Stakeholder Involvement: The Council includes representatives from both the central and state governments, ensuring that diverse viewpoints are considered while working towards a unified tax system.
Conclusion
In summary, the GST Council's guiding principle of ensuring a harmonized national market for goods and services underpins its efforts to create an efficient and equitable tax environment. This approach not only simplifies tax compliance but also fosters economic growth across the nation.
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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? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about 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? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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?.
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? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about 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? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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?.
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