Question Q.14suggest corrective measuresGS2GS2

How is the 'vertical' and 'horizontal' devolution of taxes to the states decided? Highlighting the devolution of taxes, suggest corrective measures.

Introduction

Tax devolution to the states, vertically and horizontally are determined by GST and Finance Commission

15 words

Main Body

Ans) Tax devolution to the states, vertically and horizontally are determined by GST and Finance Commission, (Art 279A & Art 280) via both constitutional bodies.

Devolution of Taxes to States:

① Vertical devolutionFC formula(41:) allocate to (IST PC) via cases and surcharges not added - (Art 271) to divide pool.

② (GST)decides allocate to GST council - set up by President ↓ 1/3rd centre voting power, 2/3rd state votes

③ Horizontal devolutionStates in Finance CommissionHinchi Comm. Participation in ISR finalized.

④ FC formulaAIDA Income distance TPS v.1. Area (ISJ.), Population (ISV.), Forest and fishery (IOCP). Demographic performance (IP.S.), Tax efforts (S.T.)

⑤ (GST) same by Council again.

Revenues Raised by States:

① Decreasing Divisible pooldue to increasing Cesses and surcharges(E.S.T.) currently of Centre Revenue

② Contribution - eligibility mismatch loss to producing states(G. Kalayataram)

③ Loss of autonomy in each tax collection(GST) uniform raws, aligned autonomy vanished

④ Delisting share of divisible pool(41:) after Jammu & Kashmir - UT.

⑤ (EC) item recommendation not followed. Corrective Measures for Same:

① lesting on less and such argues by of centre - (Sarkara Comm.)

② Broader Lemitation of States in Finance Commission(Hinchi Comm. Participation in ISR finalized.

③ Establish permanent FC for mandatory devolution.

④ Establish (GST Apellate Scheme) to speeden up complaint.

Thus et Federalism forms the backbone of cooperative federalism. And in such federalism, (DV Gunidhidat) states must be positively, not at conflict.

257 words17 paragraphs

Conclusion

Thus et Federalism forms the backbone of cooperative federalism. And in such federalism states must be positively, not at conflict.

20 words

Examiner score

0.8/10

Open original scan

Page 31

Topper

Prachet D

AIR 1932025

Subject & Paper

GS2GS2

Topic

Federal Structure - Functions, Responsibilities, Devolution of Powers and Finances

Centre-State Financial Relations

Tax Devolution and Finance Commission

Writing Stats

292

Total words

Paragraphs

structured-answer

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