Question

Which of the following statements are correct regarding the 101st Constitutional Amendment Act?

i. It empowered both Parliament and State Legislatures to enact laws for levying GST.

ii. It introduced Article 279A, establishing the GST Council.

iii. It repealed Article 268A of the Constitution.

iv. It came into force on 8 September 2016.

• A. i, ii, and iii only
• B. i, iii, and iv only
• C. ii and iii only
• D. All are correct

Answer 1

Answer:

A. i, ii, and iii only

101st Constitutional Amendment Act, 2016

• This amendment act is a landmark legislation primarily related to the introduction of the Goods and Services Tax (GST) in India.
• It was enacted to create a unified national market for goods and services by subsuming multiple indirect taxes into a single tax.
• Statement i: This statement is correct. The amendment empowered both the Parliament and the State Legislatures to make laws concerning the levy and administration of GST. This reflects a federal structure for GST, with concurrent powers.
• Statement ii: This statement is correct. The Act introduced Article 279A into the Constitution, which provides for the establishment of the GST Council.
• The GST Council is a constitutional body responsible for making recommendations to the Union and State Governments on GST-related matters.
• It comprises the Union Finance Minister (Chairperson), the Union Minister of State for Revenue, and the Finance Ministers of all States and Union Territories.
• Statement iii: This statement is correct. The 101st Amendment Act effectively repealed Article 268A of the Constitution, which dealt with the taxes levied and collected by the Union but assigned to the States. This was necessary to facilitate the GST regime.
• Statement iv: This statement is incorrect. The 101st Constitutional Amendment Act came into force on 1st July 2017, not 8 September 2016. The date of commencement is crucial for exam purposes.
• Key takeaway for exams: Focus on the specific articles introduced or repealed, the date of commencement, and the powers conferred upon Parliament and State Legislatures. Understanding the role and composition of the GST Council is also vital.