Question

Which of the following statements are correct regarding the 101st Constitutional Amendment (GST)?

i. The 101st Amendment empowered both Parliament and State Legislatures to enact laws for levying GST simultaneously.

ii. Article 268A was repealed by the 101st Amendment.

iii. The GST Bill was passed by the Rajya Sabha on 3 August 2016 and by the Lok Sabha on 8 August 2016.

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

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

Answer 1

Answer:

B. Only i, ii, and iii are correct

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

• The 101st Constitutional Amendment Act, 2016, is a landmark legislation that introduced the Goods and Services Tax (GST) in India, consolidating multiple indirect taxes into a single one.
• Statement i: This amendment simultaneously empowered both the Union Parliament and the State Legislatures to make laws with respect to GST. This concurrent power sharing is a unique feature of India's federal structure applied to indirect taxation.
• Statement ii: Article 268A, which dealt with the service tax levied and collected by the Union but appropriated by the States, was indeed repealed by the 101st Amendment Act. This was necessary to subsume service tax under the GST regime.
• Statement iii: The legislative journey of the GST Bill involved its passage in the Rajya Sabha on August 3, 2016, and subsequently in the Lok Sabha on August 8, 2016. This timeline reflects the parliamentary approval process.
• Statement iv: The GST Council, the apex body for GST in India, was established under Article 279A of the Constitution, not Article 246A. Article 279A specifically empowers the President to create the GST Council. Article 246A, on the other hand, grants powers to the Union and State Legislatures to make laws relating to GST.
• The introduction of GST aimed to create a unified national market, reduce cascading effects of taxes, improve tax compliance, and boost economic growth.
• It is crucial for competitive exams to remember the specific articles and timelines related to major constitutional amendments.