Question

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

1. It introduced Article 246A, empowering both Parliament and State Legislatures to levy GST on goods and services.

2. It repealed Article 268A, which dealt with service tax levied by the Union.

3. It mandated the establishment of a GST Council under Article 279A.

• A. 1 and 2
• B. 2 and 3
• C. 1 and 3
• D. All are correct

Answer 1

Answer:

A. 1 and 2

101st Constitutional Amendment Act, 2016

• This amendment is a landmark legislation primarily aimed at the introduction of the Goods and Services Tax (GST) in India.
• It introduced Article 246A, which grants concurrent taxing powers to both the Union and the States to make laws with respect to GST. This article specifically allows the Parliament to legislate on GST in relation to inter-state trade or commerce.
• The amendment repealed Article 268A, which had previously allowed the Union to levy taxes on services. This paved the way for the subsumption of service tax into the GST regime.
• It established the Goods and Services Tax Council (GST Council) under the newly inserted Article 279A. The Council is a constitutional body responsible for making recommendations to the Union and the State governments on various aspects of GST.
• The GST Council consists of the Union Finance Minister as its Chairperson, the Union Minister of State for Revenue, and the Finance Ministers of all the States and Union Territories with legislatures.
• The 101st Amendment aimed to create a unified national market for goods and services, thereby enhancing economic efficiency and reducing tax complexities.
• It effectively replaced multiple indirect taxes like excise duty, service tax, VAT, etc., with a single, comprehensive tax.