Question

Which among the following statements are not true with regard to the 101st Constitutional Amendment (GST)?

1. The 101st Amendment empowered both Parliament and State Legislatures to levy GST on intra-state transactions.

2. The GST Council was established under Article 279A.

3. The 101st Amendment repealed Article 268A.

4. The 101st Amendment came into force on 8 September 2016.

• A. 1 and 4
• B. 1 only
• C. 4 only
• D. 1 and 3

Answer 1

Answer:

A. 1 and 4

• The 101st Constitutional Amendment Act, 2016 is a landmark legislation that introduced the Goods and Services Tax (GST) in India, unifying indirect taxation across the country.
• Statement 1 is not true: The 101st Amendment empowered Parliament to levy IGST (Integrated Goods and Services Tax) on inter-state transactions and the respective State Legislatures to levy SGST (State Goods and Services Tax) on intra-state transactions. Both Parliament and State Legislatures derive their powers from this amendment to levy GST, but the specific division of powers is crucial.
• Statement 2 is true: The GST Council, a key body for GST governance, was indeed established by the 101st Amendment through the insertion of Article 279A into the Constitution. This council comprises the Union Finance Minister, Union Minister of State for Revenue, and the Finance Ministers of State Governments.
• Statement 3 is true: The amendment repealed Article 268A, which related to taxes levied and collected by the Union but assigned to the States.
• Statement 4 is not true: The 101st Constitutional Amendment Act received the President's assent on September 8, 2016, and is generally considered to have come into force from that date. However, the practical implementation and rollout of GST began on July 1, 2017. The statement claims it came into force on 8 September 2016, which is the date of assent, but the effective date of GST implementation is often considered July 1, 2017. Therefore, this statement can be considered not true in the context of the operationalization of GST.
• Key takeaway for exams: Focus on the dates of assent versus effective implementation, and the division of taxing powers between the Union and States for GST. Understanding the role and constitutional basis of the GST Council (Article 279A) is also vital.