RAS question
Which committee recommended the introduction of GST in India?
Correct answer: (A) Kelkar Task Force (2004).
The Kelkar Task Force recommended introducing a comprehensive Goods and Services Tax in India to replace the existing indirect tax structure.
Explanation
The Department of Revenue traces the GST idea to the Kelkar Task Force on implementation of the FRBM Act, 2003. The Task Force noted that India's indirect-tax system had moved towards the VAT principle but still suffered from a fragmented tax base between the Centre and the States, weak treatment of services, and cascading effects. In that context, it suggested a comprehensive Goods and Services Tax based on the VAT principle. That is why Kelkar Task Force (2004) is the right option. The later work of preparing the design and road map was assigned to the Empowered Committee of State Finance Ministers, so the recommendation and the framework-development stages should not be confused.
Why the other options are wrong
- (B) Rangarajan Committee is not correct because the Department of Revenue account specifically credits the Kelkar Task Force with suggesting a comprehensive GST.
- (C) Chelliah Committee is wrong because the official GST background links the GST suggestion to the Kelkar Task Force, not to Chelliah Committee.
- (D) Wanchoo Committee is not the recommending body; the Department of Revenue names the Kelkar Task Force for the comprehensive GST suggestion.
Concept
This tests the origin of India's indirect-tax reform and the committee sequence behind GST. RAS often asks such economy questions because major tax reforms are tied to institutional reports and Centre-State fiscal coordination.