Question

Consider the following statements about the 101st Constitutional Amendment:

I. It introduced Article 246A, empowering Parliament and State Legislatures to levy GST on goods and services.

II. The GST Council was established under Article 279A by a Presidential Order.

III. Article 268A was repealed, which previously dealt with service tax levied by the Union but collected by States.

Which of the statements given above is/are correct?

• A. I and II only,
• B. II only,
• C. I, II, and III
• D. I and III only

Answer 1

Answer:

C. I, II, and III

101st Constitutional Amendment Act, 2016

• This amendment is a landmark legislation that paved the way for the introduction of the Goods and Services Tax (GST) in India.
• Article 246A was introduced, which grants the Parliament and the State Legislatures the concurrent power to make laws with respect to Goods and Services Tax.
• Parliament has the power to legislate on GST on inter-state trade or commerce.
• State Legislatures have the power to legislate on GST on intra-state trade or commerce.
• Article 279A was inserted, which provides for the establishment of a GST Council.
• The President of India constitutes the GST Council.
• The GST Council recommends to the Union and the States on matters relating to GST.
• It includes the Union Finance Minister as the Chairman, the Union Minister of State for Revenue, and the Finance Ministers of the States as members.
• Article 268A was repealed by this amendment.
• This article previously dealt with the service tax levied by the Union but collected and appropriated by the Union and the States.
• The functions previously covered under Article 268A are now subsumed under the GST regime.
• The 101st Amendment effectively removed the distinction between goods and services for the purpose of taxation, consolidating multiple indirect taxes into a single tax structure.
• Key taxes subsumed under GST include: Central Excise Duty, Additional Excise Duty, Service Tax, Central Sales Tax, State VAT, Entry Tax, Entertainment Tax, etc.
• This amendment aimed to create a unified national market for goods and services, reduce tax cascading, and improve the ease of doing business.