Disagreements between the Union and States in the GST Council often relate to tax rates, compensation for revenue loss, and the ______ of certain items under GST slabs.
- classification
- exemption
- valuation
- all of the above
Answer: all of the above
GST Council functioning challenges: (a) Tax rates: States vs Centre disagreements on optimal rates for revenue vs growth, (b) Compensation: States demanded continuation of revenue guarantee post-2022; Centre cited fiscal constraints, (c) Classification: Whether items fall under 5%, 12%, 18%, 28% slabs affects revenue distribution, (d) Exemptions: Pressure to exempt essential items vs broaden tax base. Council decisions require 3/4 majority (Union 1/3 vote weight, States 2/3); consensus-building essential but challenging. Exemplifies cooperative federalism in practice with inherent tensions.