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The GST Council's decision-making requires a 3/4th majority with weighted votes (Union 1/3, States 2/3), ensuring neither Centre nor States can dominate fiscal policy decisions and forcing ______ on tax rates, exemptions, and thresholds.
- unilateral imposition
- consensus-building
- judicial intervention
- executive discretion
Answer: consensus-building
GST Council consensus mechanism: (a) Voting structure: Article 279A(9) - decisions by 3/4 majority: Union Government has 1/3 vote weight, all State Governments collectively have 2/3 vote weight, (b) Impact: (i) Neither Centre nor any State group can dominate; requires broad agreement, (ii) Forces dialogue: Rate rationalization, compensation, compliance simplification require negotiation, (iii) Cooperative federalism: Shared sovereignty in indirect taxation for 'One Nation, One Tax', (c) Challenges: (i) Union-State disagreements on compensation continuation, (ii) Rate cuts impact on revenue, (iii) Compliance burden on MSMEs, (d) Successes: (i) Unified national market, (ii) Reduced cascading taxes, (iii) Improved tax compliance. Illustrates fiscal federalism in practice: institutionalized dialogue enabling adaptive policy-making while respecting State autonomy.