GK Question

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Under Article 279A, decisions of the GST Council are taken by a majority of not less than 3/4th of weighted votes, with the Union Government having ______ of total vote weight and all State Governments collectively having 2/3.

  1. one-fourth
  2. one-third
  3. one-half
  4. two-thirds

Answer: one-third

GST Council voting mechanism: (a) Article 279A(9): GST Council decisions by 3/4 majority of weighted votes: (i) Union Government: 1/3 vote weight, (ii) All State Governments collectively: 2/3 vote weight, (b) Rationale: Ensures neither Union nor States can dominate; requires consensus on GST rates, exemptions, thresholds, (c) Applications: (i) Rate rationalization: Merging 12%/18% slabs requires consensus-building across States, (ii) Compensation negotiations: Post-2022 continuation debates resolved through Council dialogue, (iii) Compliance simplification: E-invoicing expansion, return filing improvements agreed through Council, (d) Challenges: (i) Union-State disagreements: On revenue impact, compliance burden, rate cuts, (ii) Data sharing: For enforcement, fraud detection, requires trust, coordination, (iii) Political dynamics: Coalition politics, electoral cycles affect Council decisions, (e) Illustrates cooperative fiscal federalism: Shared sovereignty in indirect taxation for 'One Nation, One Tax'; weighted voting enables consensus while respecting State autonomy.

Topic GST Council - Weighted Voting Mechanism
Exam Relevance GST Council voting mechanism frequently asked in UPSC Prelims and Economics-Polity overlap exams