Question

Which of the following propositions about the 101st Constitutional Amendment is/are not correct?

1. The GST Bill was signed by the President on 8 September 2016.

2. The amendment introduced Article 269A for integrated GST on inter-State transactions.

3. The GST Council was established under Article 246A.

4. The amendment repealed Article 268A.

• A. 1 and 3 only
• B. 3 only
• C. 1 and 2 only
• D. 2 and 4 only

Answer 1

Answer:

B. 3 only

101st Constitutional Amendment Act, 2016

• Goods and Services Tax (GST): The 101st Constitutional Amendment Act, 2016, is primarily associated with the introduction of the Goods and Services Tax (GST) in India.

• Date of Presidential Assent: The GST Bill received the President's assent on September 8, 2016. This date is crucial for exam purposes.

• Article 246A: This amendment introduced Article 246A, which empowers Parliament and State Legislatures to make laws with respect to GST. It specifically deals with the power to levy taxes for Goods and Services Tax.

• Article 269A: The amendment introduced Article 269A. This article deals with the levy and collection of GST on inter-State trade or commerce. It clarifies that GST on supply of goods or services in the course of inter-State trade or commerce shall be levied and collected by the Government of India and shall be apportioned between the Union and the States.

• Repeal of Article 268A: The 101st Amendment Act repealed Article 268A, which dealt with the taxes levied and collected by the Union but distributed between the Union and the States (e.g., Service Tax prior to GST).

• GST Council: The GST Council was established by the Central Government under Article 279A of the Constitution, not Article 246A. Article 279A specifically provides for the constitution of the GST Council. The GST Council is a constitutional body that makes recommendations to the Union and the States on GST-related matters.

• Objective of GST: The main objective behind the implementation of GST was to create a unified national market by eliminating cascading effects of indirect taxes, reducing tax evasion, and simplifying the tax structure.

• Impact: The amendment significantly altered the indirect tax structure of India, subsuming multiple central and state taxes into a single tax.