Question

With reference to the 101st Constitutional Amendment, consider the following statements:

I. It amended Article 286 to restrict imposition of taxes on sale or purchase of goods.

II. The GST Bill was passed by Rajya Sabha on 3 August 2016 with amendments.

III. Pranab Mukherjee was the President who signed the bill.

Which of the statements given above is/are correct?

• A. I and II only
• B. I only
• C. I, II, and III
• D. III only

Answer 1

Answer:

C. I, II, and III

101st Constitutional Amendment Act, 2016

• This amendment introduced the Goods and Services Tax (GST) in India, unifying various indirect taxes levied by the central and state governments.

• Statement I: This statement is correct. The 101st Amendment amended Article 279A and also empowered Parliament to make laws with respect to GST. It effectively replaced the previous regime of indirect taxation. While Article 286 deals with restrictions on imposition of taxes by states on sale or purchase of goods, the 101st amendment's primary focus was on enabling the GST regime, which restructured the taxation of goods and services.

• Statement II: This statement is correct. The Constitution (One Hundred and First Amendment) Bill, 2014 was introduced in the Rajya Sabha on August 3, 2016, and it was passed with amendments. It later received Presidential assent.

• Statement III: This statement is correct. The GST Bill was signed into law by then President Pranab Mukherjee. He played a crucial role in the final stages of the bill's passage and assent.

• Key Features of GST:

  • Abolished multiple indirect taxes like VAT, Service Tax, Excise Duty, etc.

  • Ensured a seamless flow of input tax credit across the supply chain.

  • Distinguished between CGST (Central GST), SGST (State GST), and IGST (Integrated GST).

  • Established the GST Council to make recommendations on GST rates, administration, etc.

  • The GST Council is a constitutional body, chaired by the Union Finance Minister, with state finance ministers as members.

• Background: The idea of GST was first proposed in 1999. Several committees, including the Kelkar Committee, recommended its implementation. The journey from proposal to enactment spanned over a decade, involving significant political consensus building.