Indian Polity · Polity
Which of the following statements is NOT correct regarding the Centre-State financial relations in India?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The GST Council acts as a joint forum to make recommendations on Goods and Services Tax matters.
- 2States are fully independent of the Union and do not depend on it for statutory or discretionary grants.✓
- 3The Finance Commission recommends the distribution of net proceeds of taxes between the Centre and States.
- 4They are dealt with in Part XII of the Constitution from Articles 268 to 293.
Correct answer
States are fully independent of the Union and do not depend on it for statutory or discretionary grants.
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