Question

Consider the following statements regarding the 101st Constitutional Amendment (GST).

1. Article 279A was added to establish the GST Council.

2. The amendment repealed Article 268A to streamline GST implementation.

3. The GST Bill was signed by the President on 1 July 2017.

Which of the statements given above is/are correct?

• A. 1 and 2 only
• B. 1 and 3 only
• C. 2 and 3 only
• D. All of the above

Answer 1

Answer:

A. 1 and 2 only

101st Constitutional Amendment Act, 2016 (Goods and Services Tax - GST)

• Insertion of Article 279A: This article empowers the President to constitute a GST Council. The GST Council is a constitutional body responsible for making recommendations on various aspects of GST.
• Repeal of Article 268A: Article 268A, which dealt with the service tax levied and collected by the Union and distributed between the Union and the States, was repealed. This was a crucial step to subsume various indirect taxes into GST.
• Empowerment for Parliament: The amendment provided Parliament with the power to make laws with respect to GST, including inter-state trade or commerce.
• State Autonomy: States were also empowered to levy and collect GST on goods and services, including those supplied inter-state.
• President's Assent: While the GST regime officially commenced on 1 July 2017, the 101st Constitutional Amendment Act, 2016, received the President's assent on 8 September 2016. The date of commencement of the Act is different from the date of President's assent.
• Key Objective: The primary objective of the GST regime and the amendment was to create a unified national market for goods and services, eliminate cascading effects of taxes, and improve the ease of doing business.
• Composition of GST Council: The Union Finance Minister is the chairperson of the GST Council. Union Minister of State for Revenue, and the Finance Minister of each State are also members.