Question

Regarding the 101st Constitutional Amendment, consider the following statements:

I. The GST Bill was originally the 122nd Constitutional Amendment Bill.

II. It imposed integrated GST on inter-State transactions under Article 269A.

III. Article 271, dealing with surcharge on certain duties and taxes, was amended.

Which of the statements given above is/are correct?

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

Answer 1

Answer:

D. I, II, and III

101st Constitutional Amendment Act, 2016

• This Amendment Act is a landmark legislation that introduced the Goods and Services Tax (GST) in India.

• Statement I: The GST Bill was indeed introduced as the 122nd Constitutional Amendment Bill. It successfully passed through both houses of Parliament and received presidential assent to become the 101st Constitutional Amendment Act.

• Statement II: The amendment empowered the Parliament to make laws with respect to GST on the supply of goods or services or both, including an integrated GST (IGST) on inter-State trade or commerce. This was enabled by inserting Article 269A, which deals with the levy and collection of IGST by the Government of India and its apportionment between the Union and the States.

• Statement III: Article 271 of the Constitution, which pertains to surcharge on certain duties and taxes, was amended to exclude the duties and taxes levied under the GST mechanism from the non-divisible pool of taxes. This amendment ensured that the proceeds from GST are shared between the Union and the States as per the recommendations of the GST Council.

Key Provisions and Impact of the 101st Amendment Act:

• Abolished multiple indirect taxes levied by the Union and State governments (e.g., Central Excise Duty, Service Tax, VAT, Entry Tax).

• Unified the Indian market by creating a single tax structure.

• Established the GST Council, a constitutional body responsible for making recommendations on GST rates, procedures, and other related matters.

• The Act came into effect from July 1, 2017.