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Context: The “one state one vote” structure under GST Council is a flawed one. It needs to be replaced with a proportional representation of voting in the GST Council. This system should be based on the size of states or their revenue contribution to the GST pool.
Distribution methodology for taxes collected under GST
States contribute maximum to the GST pool
Source of revenue for the states in India
Every state in India has two major components of revenues. These are,
Negative trends in the revenue collection & distribution in India
With time, net transfers from center should decrease as states come at par in development relative to each other. But in India over the past few years, these net transfers have increased.
By: Shubham Tiwari ProfileResourcesReport error
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