Question

Choose the correct statement(s) regarding the 101st Constitutional Amendment.

i) The 101st Amendment introduced Article 246A, empowering both Parliament and State Legislatures to levy GST.

ii) The amendment repealed Article 268A and introduced Article 279A for the establishment of the GST Council.

iii) The GST Bill was passed by the Lok Sabha on 3 August 2016.

iv) The amendment provided for compensation to States for revenue loss due to GST for a period of five years.

• A. i, ii, and iv only
• B. i and iii only
• C. ii and iv only
• D. i, iii, and iv only

Answer 1

Answer:

A. i, ii, and iv only

101st Constitutional Amendment Act, 2016

• Introduction of GST: The 101st Constitutional Amendment Act, enacted in 2016, brought about a significant reform in India's indirect taxation system by introducing the Goods and Services Tax (GST).

• Article 246A: This amendment inserted Article 246A, which confers concurrent powers upon the Parliament and the State Legislatures to make laws with respect to GST. This shared power is crucial for the unified implementation of GST across the country.

• Article 279A: The amendment introduced Article 279A, which empowers the President to constitute a GST Council.

• GST Council: The GST Council is a constitutional body responsible for making recommendations on issues relating to GST. It comprises the Union Finance Minister (Chairperson), the Union Minister of State for Revenue, and the Finance Ministers of all States and Union Territories.

• Repeal of Article 268A: Article 268A, which dealt with taxes levied and collected by the Union but assigned to the States, was repealed by this amendment as its provisions were subsumed under the GST regime.

• Compensation to States: To ensure a smooth transition and address potential revenue shortfalls for states, the amendment provides for compensation to states for any loss of revenue arising on account of the implementation of GST for a period of five years from the date of GST implementation.

• Legislative Timeline: While the GST constitutional amendment bill was passed by the Lok Sabha on August 3, 2016, the actual implementation of GST commenced from July 1, 2017.

• Impact: The GST aimed to create a single, unified market in India, eliminate cascading effects of taxes, improve tax compliance, and boost economic growth.