Federal Financial Amendments

Statement 3 is correct. As per Article 279A(1), the GST Council impacts the federal distribution of powers. Therefore, under the proviso to Article 368(2), it requires a Special Majority in Parliament AND consent of half the state legislatures by a simple majority. Statement 1 is incorrect because a simple majority is insufficient. Statement 2 is incorrect because the Basic Structure doctrine does not freeze federalism; it merely regulates how it can be amended.

Both A and R are true, and R is the correct explanation of A. Because the GST Council (Article 279A) is a core component of the federal financial structure, any amendment altering its composition or voting rules triggers the strict requirements of Article 368. Parliament's special majority is not enough; it must be ratified by at least half the states, preventing unilateral Central action.

Option 2 is the correct legal flaw. The GST Council is a constitutional body under Article 279A. Because it affects the federal relationship, Article 368 mandates that after passing Parliament with a Special Majority, the bill MUST be sent to the states. At least half of the state legislatures must ratify it before the President can sign it. Bypassing the states renders the amendment unconstitutional.

Two statements are correct (the first and third). Parliament needs a Special Majority, and the President must give assent afterward. The second statement is a distractor; while half the states must ratify the bill, they do so using a SIMPLE majority, not a special majority.