Consider the following statements: 1. The Constitution provides for a Finance Commission to recommend the distribution of taxes between the Union and the States. 2. The Grants-in-Aid to States are provided under Article 275 of the Constitution. 3. States have exclusive power to levy tax on inter-state trade. Which of the statements given above is/are correct? |ForumIAS

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[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: A

Notes:

Explanation: Statement 3 is incorrect: Only the Centre can levy tax on inter-state trade (Article 269A – IGST under GST).