Question 1

Consider the following statements regarding the Rajya Sabha (Council of States):
1. The Fourth Schedule of the Constitution deals with the allocation of seats in the Rajya Sabha to the states and union territories.
2. The representatives of states in the Rajya Sabha are elected by the members of both the State Legislative Assembly and the State Legislative Council where it exists.
3. The President nominates 12 members to the Rajya Sabha from people who have special knowledge in fields like art, literature, science, and social service.
Which of the statements given above is/are NOT correct?

Accepted Answer

2 only. Statement 2 is incorrect. The representatives of each state in the Rajya Sabha are elected by the elected members of the legislative assembly of the state in accordance with the system of proportional representation by means of the single transferable vote. Members of the Legislative Council do not participate in this election.

Question 2

Statement I: Prorogation of a session of the Parliament not only terminates the session but also the life of the House of the People (Lok Sabha).
Statement II: Dissolution of the Lok Sabha ends the very life of the existing House, and a new House is constituted after general elections are held.

Accepted Answer

Statement I is incorrect but Statement II is correct.. Prorogation only terminates a session of the House and not its life. It is the dissolution that ends the life of the Lok Sabha. Therefore, Statement I is incorrect. Statement II correctly defines the effect of dissolution on the Lok Sabha.

Question 3

Consider the following pairs regarding Parliamentary Committees:
1. Public Accounts Committee : Examines the annual audit reports of the Comptroller and Auditor General (CAG).
2. Estimates Committee : Suggests alternative government policies to bring about efficiency in administration.
3. Committee on Public Undertakings : Examines the reports and accounts of public undertakings.
4. Departmentally Related Standing Committees : Consider the demands for grants of the concerned ministries/departments before they are discussed and voted in the Lok Sabha.
How many of the pairs given above are correctly matched?

Accepted Answer

Only three pairs. The Estimates Committee's function is to report what 'economies, improvements in organisation, efficiency or administrative reform, consistent with the policy underlying the estimates' may be effected. It cannot question the policy laid down by Parliament or suggest alternative policies. Pairs 1, 3, and 4 are correctly matched with their functions.

Question 4

A joint sitting of both Houses of Parliament can be summoned by the President to resolve a deadlock over the passage of
which of the following?
1. Money Bill
2. Constitutional Amendment Bill
3. Ordinary Bill
4. Financial Bill (Category I)
Select the correct answer using the code given below.

Accepted Answer

3 and 4 only. Article 108 of the Constitution provides for a joint sitting to resolve a deadlock between the two Houses over an Ordinary Bill or a Financial Bill. There is no provision for a joint sitting in the case of a Money Bill (as Rajya Sabha has limited powers) or a Constitutional Amendment Bill (which must be passed by each House separately).

Question 5

With reference to the Speaker of the Lok Sabha, consider the following statements:
1. The Speaker is elected by the Lok Sabha from amongst its members as soon as may be after its first sitting.
2. The Speaker does not vote in the first instance but exercises a casting vote in the case of a tie.
3. The decision of the Speaker on whether a bill is a Money Bill is final and cannot be questioned in any court of law.
Which of the statements given above are correct?

Accepted Answer

1, 2 and 3. All three statements are correct. The Speaker is elected by the Lok Sabha from its members. The Speaker's primary role in voting is to use a casting vote to break a tie. Furthermore, Article 110(3) of the Constitution states that the Speaker's certification of a bill as a Money Bill is final.

Question 6

Consider the following pairs:
1. Article 280 : Recommendations of the Finance Commission
2. Article 281 : Establishment of Finance Commission
How many of the pairs given above is/are correctly matched?

Accepted Answer

Neither 1 nor 2. Both pairs are incorrectly matched. According to the Constitution, Article 280 deals with the establishment of the Finance Commission, and Article 281 deals with the recommendations of the Finance Commission.

Question 7

With reference to the Finance Commission, consider the following statements:
1. It is described in the Constitution as a quasi-judicial body.
2. It is constituted by the President of India every fifth year or at an earlier time if necessary.
Which of the statements given above is/are correct?

Accepted Answer

Both 1 and 2. Both statements are correct. Article 280 of the Constitution provides for a Finance Commission as a quasi-judicial body. It also specifies that the President of India shall constitute it every fifth year or at such earlier time as he considers necessary.

Question 8

Consider the following statements regarding the Finance Commission:
1. Article 280 of the Constitution of India provides for its establishment.
2. It is a purely judicial body.
3. The President of India is the authority responsible for its constitution.
Which of the statements given above is/are NOT correct?

Accepted Answer

2 only. Statement 2 is not correct. The Finance Commission is a quasi-judicial body, not a purely judicial one. Statements 1 and 3 are correct as Article 280 provides for the Commission and empowers the President to constitute it.

Question 9

Statement I: The Constitution mandates the President of India to constitute a Finance Commission strictly at the expiration of every fifth year.
Statement II: The President has the discretion to constitute the Finance Commission at a time earlier than the five-year interval if circumstances warrant.

Accepted Answer

Statement I is incorrect but Statement II is correct. Statement I is incorrect because the constitutional provision (Article 280) allows for flexibility. It states 'every fifth year or at such earlier time as he considers necessary'. Statement II correctly captures this discretionary power of the President to form the commission before the five-year term ends.

Question 10

Consider the following statements:
1. The Finance Commission is a constitutional body established under Article 280.
2. The subject-matter of Article 281 is the recommendations made by the Finance Commission.
3. The Finance Commission is constituted for a fixed term of five years.
How many of the above statements are correct?

Accepted Answer

Only two. Statements 1 and 2 are correct. The Finance Commission is a constitutional body under Article 280, and Article 281 pertains to its recommendations. Statement 3 is incorrect because while it is constituted 'every fifth year', the President can also constitute it 'at such earlier time as he considers necessary', meaning the interval is not rigidly fixed at five years.

Question 11

Consider the following statements regarding the composition and tenure of the Finance Commission:
1. The Finance Commission consists of a chairman and five other members.
2. The members of the Finance Commission hold office for a fixed term of five years as specified in the Constitution.
3. Members of the Finance Commission are eligible for reappointment.
Which of the statements given above is/are correct?

Accepted Answer

3 only. The Finance Commission consists of a chairman and four other members, not five. Their term is not fixed by the Constitution but is specified by the President in his order. The members are indeed eligible for reappointment.

Question 12

With reference to the qualifications for members of the Finance Commission (other than the chairman), consider the following:
1. A person who has special knowledge of economics.
2. A serving judge of the Supreme Court.
3. A person who has experience in public affairs.
4. A person who has specialised knowledge of finance and accounts of the government.
How many of the above are specified qualifications for the members of the Finance Commission?

Accepted Answer

Only two. The specified qualifications for members (other than the chairman) include: a person with special knowledge of economics, and a person with specialised knowledge of government finance and accounts. A judge of a High Court (or one qualified to be) is a qualification, not a Supreme Court judge. Experience in public affairs is the qualification for the chairman, not the other members.

Question 13

Statement I: The Constitution of India authorises the Parliament to determine the qualifications of the chairman and members of the Finance Commission.
Statement II: The President of India appoints the chairman and members of the Finance Commission and also specifies their term of office.

Accepted Answer

Both Statement I and Statement II are correct but Statement II is not the correct explanation for Statement I.. Both statements are factually correct. The Constitution empowers Parliament to decide the qualifications. Separately, the President is responsible for appointing the members and specifying their tenure. The President's power of appointment does not explain Parliament's power to set qualifications; they are distinct functions assigned to different entities.

Question 14

Consider the following statements about the Finance Commission:
1. The Chairman of the Finance Commission should be a person having experience in public affairs.
2. The qualifications of the members of the Finance Commission are detailed in the Constitution of India itself.
3. A person qualified to be appointed as a judge of a High Court is eligible to be appointed as a member of the Finance Commission.
Which of the statements given above is/are NOT correct?

Accepted Answer

2 only. Statement 2 is incorrect. The Constitution does not detail the qualifications itself; it authorises the Parliament to determine them. Statements 1 and 3 are correct as they accurately reflect the qualifications specified by Parliament for the chairman and members, respectively.

Question 15

Consider the following pairs regarding the qualifications for the Finance Commission:
1. Chairman : Special knowledge of economics
2. Member : Experience in public affairs
3. Member : Wide experience in financial matters and in administration
4. Member : A judge of a high court or one qualified to be appointed as one
How many of the pairs given above are correctly matched?

Accepted Answer

Only two pairs. Pair 1 is incorrect; experience in public affairs is for the Chairman. Pair 2 is incorrect; this qualification is for the Chairman, not a member. Pairs 3 and 4 are correctly matched as they are two of the four specified categories for members other than the chairman. Therefore, only two pairs are correctly matched.

Question 16

Consider the following statements regarding the recommendations of the Finance Commission:
1. It recommends the principles that should govern the grants-in-aid to the states by the Centre.
2. It suggests measures to augment the consolidated fund of a state to supplement the resources of panchayats and municipalities.
3. It recommends the distribution of the net proceeds of taxes to be shared between the Centre and the states, but not the allocation among the states themselves.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only. The Finance Commission recommends principles for grants-in-aid and measures to augment state consolidated funds for local bodies. However, its mandate for tax distribution includes both the vertical share (Centre-states) and the horizontal allocation among the states. Therefore, statement 3 is incorrect.

Question 17

Statement I: The recommendations made by the Finance Commission are only of an advisory nature and are not binding on the government.
Statement II: The Constitution of India explicitly lays down that the recommendations of the Finance Commission shall give rise to a legal right in favour of the beneficiary states to receive the recommended funds.

Accepted Answer

Statement I is correct but Statement II is incorrect.. Statement I is correct as the Finance Commission's recommendations are advisory. Statement II is incorrect because the Constitution does not grant states a legal right to the funds recommended by the commission; it is up to the Union government to implement the recommendations.

Question 18

Consider the following functions.
How many of the functions listed below fall under the mandate of the Finance Commission of India?
1. Suggesting grants to certain states in lieu of export duty on jute and jute products for a temporary period from the commencement of the Constitution.
2. Recommending measures to augment the consolidated fund of a state for panchayats, based on the recommendations of the State Finance Commission.
3. Formulating five-year plans for the country's economic development.
4. Recommending the principles governing grants-in-aid to the states out of the Consolidated Fund of India.

Accepted Answer

Only three. The Finance Commission's mandate includes recommending grants-in-aid (function 4), measures for local body funding (function 2), and historically, it suggested grants related to jute export duty (function 1). Formulating five-year plans (function 3) was the function of the erstwhile Planning Commission, not the Finance Commission. Thus, three of the functions are correct.

Question 19

With reference to the historical context of fiscal federalism in India, consider the following statements:
1. Until 2014, the role of the Finance Commission was sometimes undermined by the Planning Commission, which was a constitutional body.
2. For the first ten years after the Constitution's commencement, the Finance Commission suggested grants for certain states related to jute export duties.
3. The Planning Commission was replaced by the NITI Aayog in 2015.
Which of the statements given above is/are NOT correct?

Accepted Answer

1 only. Statement 1 is incorrect because the erstwhile Planning Commission was a non-constitutional and non-statutory body, not a constitutional one. Statements 2 and 3 are historically accurate facts mentioned in the source material.

Question 20

Consider the following statements regarding the procedure after the Finance Commission finalises its report:
1. The commission submits its report directly to both the Houses of Parliament.
2. The President of India lays the report before Parliament along with an explanatory memorandum on the action taken.
How many of the above statements is/are correct?

Accepted Answer

Only one. Only the second statement is correct. The Finance Commission submits its report to the President, not directly to Parliament. It is the President's constitutional duty to lay the report and an accompanying explanatory memorandum before both Houses of Parliament.

Question 21

Consider the following pairs:
1. Second Finance Commission : K. Santhanam
2. Fourth Finance Commission : A.K. Chanda
3. Seventh Finance Commission : J.M. Shelat
4. Tenth Finance Commission : K.C. Pant
How many of the pairs given above are correctly matched?

Accepted Answer

Only three pairs. Pair 1 is correct: K. Santhanam chaired the Second Finance Commission. Pair 2 is incorrect: The Fourth Finance Commission was chaired by Dr. P.V. Rajamannar, while A.K. Chanda chaired the Third. Pair 3 is correct: J.M. Shelat chaired the Seventh Finance Commission. Pair 4 is correct: K.C. Pant chaired the Tenth Finance Commission. Therefore, three pairs are correctly matched.

Question 22

With reference to the timeline of Finance Commissions, consider the following statements:
1. The gap between the appointment of a Finance Commission and the submission of its report has consistently been one year.
2. The implementation period for a report always begins in the year immediately following the submission of the report.
3. The implementation period for the reports has always been a fixed duration of five years.
Which of the statements given above is/are correct?

Accepted Answer

None. Statement 1 is incorrect; for example, the Eighth Commission was appointed in 1982 and submitted its report in 1984 (a two-year gap). Statement 2 is incorrect; the Fifteenth Commission was appointed in 2017 and its report was expected in 2020, with implementation also starting in 2020. Statement 3 is incorrect; the implementation periods for the Third (1962-66), Fourth (1966-69), Ninth (1989-95), and Fifteenth (2020-2026) Commissions were not five years. Therefore, none of the statements are correct.

Question 23

Consider the following statements regarding the Chairmen of various Finance Commissions:
1. The First Finance Commission was chaired by K.C. Neogy.
2. Y.B. Chavan was the chairman of the Eighth Finance Commission.
3. The chairman of the Ninth Finance Commission was N.K.P. Salve.
Which of the statements given above is/are NOT correct?

Accepted Answer

None. All the given statements are factually correct based on the historical list. K.C. Neogy chaired the First Commission. Y.B. Chavan chaired the Eighth Commission. N.K.P. Salve chaired the Ninth Commission. Since the question asks for the incorrect statements, the answer is 'None'.

Question 24

Consider the following statements about the history of Finance Commissions in India:
1. The first Finance Commission was appointed in 1951 for an implementation period beginning in 1952.
2. The implementation period for a Finance Commission's report has, on some occasions, been for a duration of less than five years.
3. Since the appointment of the Tenth Finance Commission in 1992, every subsequent commission has been appointed in the 21st century.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only. Statement 1 is correct; the First Finance Commission was appointed in 1951 and its report was implemented from 1952-57. Statement 2 is correct; the Third Commission's report was for 1962-66 (4 years) and the Fourth for 1966-69 (3 years). Statement 3 is incorrect; the Eleventh Finance Commission was appointed in 1998, which is in the 20th century. Therefore, only statements 1 and 2 are correct.

Question 25

Consider the following individuals who have chaired the Finance Commission:
1. Brahamananda Reddy
2. Y.V. Reddy
3. Dr. Vijay Kelkar
4. N.K. Singh
How many of the individuals listed above chaired a Finance Commission that was appointed after the year 2000?

Accepted Answer

Only three. Brahamananda Reddy (Sixth Commission) was appointed in 1972. Dr. C. Rangarajan (Twelfth Commission) was appointed in 2002. Dr. Vijay Kelkar (Thirteenth Commission) was appointed in 2007. Y.V. Reddy (Fourteenth Commission) was appointed in 2013. N.K. Singh (Fifteenth Commission) was appointed in 2017. Out of the given list, Y.V. Reddy, Dr. Vijay Kelkar, and N.K. Singh were appointed after the year 2000. Brahamananda Reddy was not. Therefore, three of the individuals listed fit the criteria.

Question 26

Consider the following statements regarding the establishment of the Goods and Services Tax (GST) Council:
1. The GST Council was established through the 102nd Amendment Act of the Constitution.
2. The amendment inserted a new Article 279-A in the Constitution.
3. The President of India is empowered to constitute the GST Council by an order.
4. The Secretariat of the Council is located in Mumbai.
How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is incorrect; the GST Council was established by the 101st Amendment Act of 2016. Statement 4 is incorrect; the Secretariat is located in New Delhi. Statements 2 and 3 are correct as the 101st Amendment inserted Article 279-A, which empowers the President to constitute the Council by an order.

Question 27

With reference to the GST Council, consider the following statements:
1. The Union Revenue Secretary serves as the ex-officio Secretary to the Council.
2. The Council is described as the first constitutional federal body with powers for all major GST-related decisions.
3. The President of India is responsible for determining the procedure for the performance of the Council's functions.
Which of the statements given above is/are NOT correct?

Accepted Answer

3 only. Statement 3 is incorrect. The Constitution provides that the GST Council itself has to determine the procedure in the performance of its functions. Statements 1 and 2 are correct descriptions of the Council's administrative structure and its unique constitutional status.

Question 28

Consider the following statements regarding the vision and mission of the GST Council:
1. The Council is guided by the need to develop a harmonised national market for goods and services.
2. A key mission is to evolve a GST structure that is information technology driven and user friendly.
3. The functioning of the Council is intended to establish high standards of competitive federalism.
Which of the statements given above is/are correct?

Accepted Answer

1 and 2 only. Statement 3 is incorrect. The Council aims to establish high standards of 'co-operative federalism', not competitive federalism. Statements 1 and 2 correctly state the guiding principles and mission of the GST Council, focusing on a unified market and an IT-driven system.

Question 29

Statement I: The 101st Amendment Act of 2016 itself established the Goods and Services Tax Council.
Statement II: The 101st Amendment Act of 2016 empowered the President to constitute the Goods and Services Tax Council by an order, which was subsequently issued in 2016.

Accepted Answer

Statement I is incorrect but Statement II is correct.. Statement I is incorrect because the Act did not directly establish the Council; it created the provision for its establishment. Statement II is correct as it accurately describes the constitutional procedure: the amendment empowered the President, who then constituted the Council via an order. The Act paved the way, but the President's order was the constituting action.

Question 30

Consider the following pairs with respect to the GST Council:
1. Constitutional Amendment : 101st Amendment Act
2. Empowering Article : Article 279-A
3. Ex-officio Secretary : Union Finance Secretary
4. Guiding Principle : Co-operative Federation
How many of the pairs given above are correctly matched?

Accepted Answer

Only three pairs. Pair 3 is incorrectly matched. The Union Revenue Secretary, not the Union Finance Secretary, acts as the ex-officio Secretary to the GST Council. The other three pairs are correctly matched: the 101st Amendment introduced Article 279-A, and co-operative federalism is a key principle of the Council's functioning.

Question 31

With reference to the composition of the GST Council, consider the following statements:
1. The Union Finance Minister serves as the Chairperson of the Council.
2. The Vice-Chairperson of the Council is nominated by the Union Cabinet for a fixed term.
3. The Chairperson of the Central Board of Excise and Customs (CBEC) is a member of the Council with full voting rights.

Accepted Answer

1 only. Statement 1 is correct. Statement 2 is incorrect because the Vice-Chairperson is chosen by the state members from amongst themselves, and they also decide the term. Statement 3 is incorrect because the Chairperson of the CBEC is a permanent invitee and does not have voting rights.

Question 32

Consider the following individuals/posts in the context of the GST Council:
1. The Union Finance Minister
2. The Union Minister of State in-charge of Revenue
3. The Chairperson of the Central Board of Excise and Customs
4. A Minister nominated by a state government
How many of the above are part of the composition of the GST Council, either as a member or a permanent invitee?

Accepted Answer

All four. All four are part of the GST Council's proceedings. The Union Finance Minister is the Chairperson. The Union Minister of State (Revenue/Finance) is a member. Each state nominates a minister as a member. The Chairperson of the CBEC is a permanent invitee (non-voting).

Question 33

Which of the following statements regarding the composition and roles within the GST Council is NOT correct?

Accepted Answer

The Chairperson of the Central Board of Excise and Customs is a permanent invitee with the power to vote in case of a tie.. The Chairperson of the Central Board of Excise and Customs (CBEC) is included as a permanent invitee to all proceedings of the Council, but this position is explicitly non-voting. There is no provision mentioned for them to vote, even in the case of a tie.

Question 34

Consider the following pairs regarding the GST Council's composition:
1. Chairperson : Union Finance Minister
2. Vice-Chairperson : Chosen from amongst the Union Ministers of State
3. Permanent Invitee : Chairperson of the Central Board of Excise and Customs
4. Term of Vice-Chairperson : Decided by the Union Cabinet
How many of the pairs given above are correctly matched?

Accepted Answer

Only two pairs. Pair 1 is correctly matched. Pair 2 is incorrectly matched; the Vice-Chairperson is chosen from amongst the state ministers. Pair 3 is correctly matched. Pair 4 is incorrectly matched; the term of the Vice-Chairperson is decided by the state members of the Council. Therefore, only two pairs are correct.

Question 35

Statement I: The GST Council includes representation from both the Union government and every state government.
Statement II: The Chairperson of the Central Board of Excise and Customs (CBEC) is a permanent invitee to the GST Council's proceedings to provide expert inputs but does not have a vote.

Accepted Answer

Both Statement I and Statement II are correct but Statement II is not the correct explanation for Statement I.. Statement I is correct as the Council comprises the Union Finance Minister, Union Minister of State for Finance, and a minister from each state. Statement II is also correct as the CBEC Chairperson is a non-voting permanent invitee. However, Statement II describes a specific detail about an invitee and does not explain the broader federal composition described in Statement I. Both statements are independently correct facts about the Council's structure.

Question 36

Consider the following purported functions of the GST Council:
1. Determining the final compensation to be paid to states for revenue loss.
2. Deciding the date for levying GST on petroleum crude.
3. Formulating principles for the apportionment of GST levied on supplies in the course of inter-state trade.
4. Establishing a mechanism to adjudicate disputes between the centre and states.
How many of the functions listed above are correctly stated as being within the mandate of the GST Council?

Accepted Answer

Only two functions. The GST Council's role is recommendatory in many areas. It recommends, but does not determine, the compensation for states (Parliament determines it). It recommends, but does not decide, the date for levying GST on petroleum products. However, it does formulate principles for apportionment of IGST and is tasked with establishing a dispute adjudication mechanism. Therefore, only two of the listed functions are correctly stated.

Question 37

With reference to the dispute resolution function of the GST Council, consider the following statements:
1. The Council is empowered to establish a mechanism to adjudicate disputes between the Centre and one or more states.
2. The adjudication mechanism can address disputes arising between two or more states.
3. The mechanism can also adjudicate disputes between the Centre and any state on one side and one or more other states on the other side.
Which of the statements given above is/are correct?

Accepted Answer

1, 2 and 3. The GST Council is tasked with establishing a mechanism to adjudicate disputes. The scope of this mechanism explicitly covers disputes (a) between the Centre and states, (b) between the Centre and some states versus other states, and (c) between two or more states. All three statements are correct.

Question 38

How many of the items listed below are those for which the GST Council is to recommend the date of GST levy?
1. Petroleum crude
2. High speed diesel
3. Motor spirit (petrol)
4. Natural gas
5. Aviation turbine fuel

Accepted Answer

All five. The GST Council is specifically tasked with recommending the date on which GST may be levied on a list of five specified petroleum-related products: petroleum crude, high speed diesel, motor spirit (petrol), natural gas, and aviation turbine fuel. All five items listed are correct.

Question 39

Consider the following statements regarding the functions of the GST Council:
1. It can recommend special rates for a specified period to raise additional resources during any natural calamity.
2. It determines the final compensation to be paid to the states for revenue loss, which is then enacted by Parliament.
3. It makes recommendations on the taxes, cesses, and surcharges levied by local bodies to be subsumed in GST.
Which of the statements given above is/are NOT correct?

Accepted Answer

2 only. Statement 2 is incorrect because the GST Council only recommends the compensation to states; it is the Parliament that determines the final amount based on this recommendation. Statements 1 and 3 accurately describe the Council's recommendatory functions regarding special rates during calamities and the subsuming of taxes levied by local bodies.

Question 40

Statement I: The GST Council is mandated to recommend to the states the compensation for loss of revenue arising on account of the introduction of GST for a period of five years.
Statement II: Based on the recommendation of the GST Council, the Parliament determines the compensation to be provided to the states.

Accepted Answer

Both Statement I and Statement II are correct and Statement II is the correct explanation of Statement I.. Both statements are factually correct. Statement I describes the GST Council's role in recommending compensation. Statement II describes the subsequent action taken by Parliament based on that recommendation. This represents the correct procedural sequence, where the Council's recommendation is the basis for Parliament's determination, making Statement II a correct explanation of the process initiated in Statement I.

Question 41

With reference to the voting mechanism in the GST Council, consider the following statements:
1. The vote of the central government is assigned a weightage of one-third of the total votes cast in a meeting.
2. The votes of all the state governments combined are assigned a weightage of two-thirds of the total votes cast in that meeting.
Which of the statements given above is/are correct?

Accepted Answer

Both 1 and 2. The GST Council's decision-making process is based on a weighted voting system. The central government's vote has a weightage of one-third, and the combined votes of all state governments have a weightage of two-thirds of the total votes cast. Both statements are correct.

Question 42

Consider the following statements regarding the procedures for decision-making in the GST Council:
1. The quorum required to conduct a meeting is one-half of the total number of members of the Council.
2. A decision is passed if it receives a majority of not less than two-thirds of the weighted votes of the members present and voting.
3. The vote of the central government has a weightage of 50% of the total votes cast.
How many of the statements given above are correct?

Accepted Answer

Only one. Only the first statement is correct. The quorum is indeed one-half of the total members. However, a decision requires a majority of not less than three-fourths (not two-thirds) of the weighted votes. The central government's vote has a weightage of one-third (approximately 33.33%), not 50%.

Question 43

With reference to the validity of the proceedings of the GST Council, consider the following statements:
1. Any vacancy in the constitution of the Council is a valid ground to invalidate its proceedings.
2. A decision of the Council requires a majority of not less than three-fourths of the weighted votes of the members present and voting.
3. Any procedural irregularity, regardless of its impact on the merits of the case, does not invalidate the Council's actions.
Which of the statements given above is/are NOT correct?

Accepted Answer

1 and 3 only. Statement 1 is incorrect because the proceedings are not invalidated due to a vacancy. Statement 3 is incorrect because the protection against invalidation for procedural irregularity applies only if it does not affect the merits of the case. Statement 2 is a correct description of the voting majority required. Therefore, statements 1 and 3 are not correct.

Question 44

Consider the following statements:
Statement I: The quorum for conducting a meeting of the GST Council is one-half of its total members.
Statement II: Every decision of the GST Council must be supported by at least three-fourths of the members present and voting.
Which one of the following is correct in respect of the above statements?

Accepted Answer

Statement I is correct but Statement II is incorrect.. Statement I is correct; the quorum is one-half of the total members. Statement II is incorrect because a decision requires a majority of not less than three-fourths of the 'weighted votes' of the members present and voting, not three-fourths of the members themselves. The distinction is crucial due to the different weightages assigned to the Centre and States.

Question 45

Consider the following statements regarding the working procedures of the GST Council:
1. The vote of the central government is given a weightage of one-third of the total votes cast.
2. The combined votes of all state governments are given a weightage of two-thirds of the total votes cast.
3. A decision is taken by a majority of not less than three-fourths of the weighted votes of the members present and voting.
4. A defect in the appointment of a member is a ground for invalidating a proceeding of the Council.
How many of the above statements are correct?

Accepted Answer

Only three. Statements 1, 2, and 3 accurately describe the voting weightages and the majority required for a decision in the GST Council. Statement 4 is incorrect; the proceedings of the Council will not become invalid on the ground of any defect in the appointment of a person as a member. Therefore, only three statements are correct.

Question 46

Consider the following statements regarding the Finance Commission (FC) in the context of recent debates on fiscal federalism:

1. The Finance Commission, under Article 280, has the constitutional mandate to recommend the distribution of all revenues collected by the Union, including cesses and surcharges.
2. The recommendations of the Finance Commission, as per Article 281, are binding on the government, ensuring states receive their recommended share of taxes.
3. Recent trends, such as the declining actual share of states in gross tax revenue despite FC recommendations, highlight the advisory nature of its role.
4. A proposed reform is to establish a formal relationship between the Finance Commission and the GST Council to better coordinate decisions on the divisible pool of taxes.

How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is incorrect because cesses and surcharges collected by the Union are not part of the divisible pool of taxes shared with states. Statement 2 is incorrect as the recommendations of the Finance Commission are advisory in nature, not binding on the government. Statement 3 is correct; the gap between recommended shares (e.g., 41% by 15th FC) and the actual share (around 30%) underscores the advisory role. Statement 4 is correct as establishing a formal link between the GST Council and the Finance Commission is a key reform suggested to improve coordination in fiscal federalism.

Question 47

Considering the GST Council's role as an instrument of cooperative federalism, evaluate the following statements:
1. The GST Council was established by the President through an order, as empowered by Article 279-A of the Constitution.
2. The vision of the GST Council is to establish high standards of co-operative federation, making it a key example of this principle in practice.
3. The Union Revenue Secretary acts as the ex-officio Chairperson of the Council to guide its functions.
4. The Council's recommendations on tax-sharing for inter-state trade are final and not subject to the recommendations of the Finance Commission.

How many of the above statements are correct?

Accepted Answer

Only two. Statement 1 is correct as per Article 279-A mentioned in the static content. Statement 2 is correct as the vision of the Council is to establish the highest standards of co-operative federation, and the current affairs text cites it as a key example. Statement 3 is incorrect; the Union Revenue Secretary is the ex-officio Secretary, not the Chairperson. The Union Finance Minister is the Chairperson. Statement 4 is incorrect; the current affairs text highlights a conflict where Articles 270(1A) and 270(2) state that GST-levied taxes are shared as per the Finance Commission's recommendation, creating an imbalance with the GST Council's powers under Article 269A(1). Therefore, only two statements are correct.

Finance Commission & GST Council

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