Question

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

1. The 101st Amendment empowers both Parliament and State Legislatures to levy GST under Article 246A.

2. The GST Council, established under Article 279A, includes representatives from both the Union and the States.

3. The amendment repealed Article 268A to remove the Union’s exclusive power to levy service tax.

Which of the statements given above is/are correct?

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

Answer 1

Answer:

D. All of the above

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

• Empowerment of Legislatures (Article 246A):
  • This amendment inserted Article 246A, granting concurrent powers to both the Parliament (for levying GST on inter-State supply) and State Legislatures (for levying GST on intra-State supply).
  • This provision aimed to consolidate indirect taxation powers and avoid dual taxation.
• Constitution of the GST Council (Article 279A):
  • Article 279A was introduced to establish the GST Council.
  • This council is a key decision-making body responsible for recommending policies and regulations related to GST.
  • It comprises the Union Finance Minister (Chairperson), the Union Minister of State for Revenue, and Ministers in charge of Finance/Revenue of all States and Union Territories with Legislatures, all as recommended members.
  • Decisions are made by a three-fourths majority of weighted votes, with the Union government's vote accounting for one-third and the states' votes accounting for two-thirds.
• Repeal of Article 268A:
  • The 101st Amendment Act repealed Article 268A of the Constitution.
  • This article had previously empowered the Union government to levy taxes on services. Its repeal was essential to facilitate the smooth rollout of GST, which subsumed most indirect taxes, including service tax.
• Significance for Competitive Exams:
  • The 101st Amendment is a landmark change in India's indirect tax structure.
  • Understanding the roles of Parliament, State Legislatures, and the GST Council under Articles 246A and 279A is crucial for exam preparation.
  • The repeal of Article 268A signifies the shift from multiple indirect taxes to a unified GST regime.