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The GST Council's weighted voting mechanism (Union 1/3, States 2/3) requiring 3/4 majority for decisions ensures that neither Centre nor States can dominate fiscal policy, forcing consensus-building on tax rates, exemptions, and compliance mechanisms.
- True
- False
Answer: True
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) Recent developments (2023-24): (i) Rate rationalization efforts: Merging 12% and 18% slabs, (ii) Compliance simplification: E-invoicing expansion, return filing improvements, (iii) Compensation negotiations: Post-2022 continuation debates, (d) Challenges: Union-State disagreements on revenue impact, compliance burden on MSMEs, data sharing for enforcement, (e) Illustrates fiscal federalism in practice: Institutionalized dialogue enabling adaptive policy-making while respecting State autonomy through calibrated voting mechanism.