Question

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

i. The GST Bill was signed by President Pranab Mukherjee on 8 September 2016.

ii. The 101st Amendment amended Articles 248 to 286, among others, to facilitate GST implementation.

iii. Compensation to States for revenue loss due to GST was provided for a period of three years.

• A. Only i
• B. Only i and ii
• C. Only ii and ii
• D. All of the above (i, ii, and iii)

Answer 1

Answer:

B. Only i and ii

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

Key Provisions and Context:

• Presidential Assent: The Goods and Services Tax (GST) Bill received assent from President Pranab Mukherjee on September 8, 2016, marking a significant step towards its implementation.
• Constitutional Amendments: The 101st Amendment Act brought about substantial changes to the Indian Constitution. It specifically amended Articles 246, 269A, 279A, and Article 366, among others, to create a legal framework for GST. These amendments empowered both the Union and State governments to levy GST.
• Introduction of GST: GST is an indirect tax that replaced multiple indirect taxes levied by the central and state governments, such as excise duty, service tax, VAT, and entertainment tax. The aim was to create a unified national market.
• Compensation to States: To ensure a smooth transition and address potential revenue shortfalls for states, the Act provided for compensation. This compensation was to be paid to the states for a period of five years from the date on which the Goods and Services Tax (Compensation to States) Act, 2017 came into force, i.e., from July 1, 2017.
• GST Council: The amendment also led to the formation of the GST Council, a constitutional body responsible for making recommendations on GST rates, taxes, cesses, and other issues related to GST. Article 279A provides for the establishment of this council.
• Federal Structure: GST is considered a landmark reform because it has introduced a 'concurrent federal fiscal power', where both the Centre and the States have the power to tax goods and services, fostering cooperative federalism.