What amendments have been done in the “Constitution of India” for
Implementation of Goods and Services Tax (GST)
√ Constitution (101st Amendment) Act, 2016 was enacted on 8th September, 2016.
1.) In Article 366 of the Constitution,
New clause (12A) has been inserted to provide the definition of GST.
Article – 366(12A):-
“Goods and Services Tax” means any tax on Supply of Goods or Services or both except taxes on the supply of the alcoholic liquor for human consumption.
2.)The tax shall be levied as dual GST separately by the Union and States. For this, Article-246A has been inserted.
Article – 246A:- Special provision with respect to Goods and Services Tax
Clause – 1
Notwithstanding anything contained in Article 246 and 254. Parliament, and, subject to clause – 2, the legislature of every state, have power to make laws with respect to goods and services tax imposed by the union or by such state.
Clause – 2
Parliament has exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place in the course of inter-state trade or commerce.
The provision of this article, shall, in respect of goods and services tax referred to in clause-5 of Article – 279A, takes effect from the date recommended by the Goods and Services tax council.
In Simple words,
For the implementation of GST, Article 246 and 254 has been overruled. First we have to understand what Article-246 and 254 explain.
Article-246:- Subject matter of laws made by parliament and laws made by legislature
|Matters enumerated in List-I (VIIth Schedule of Constitution)||Parliament has exclusive power to make laws.|
|Matters enumerated in List-II (VIIth Schedule of Constitution)||State legislature has exclusive power to make laws.|
|Matters enumerated in List-III (VIIth Schedule of Constitution)||Parliament and legislature of any state have power to make laws.|
Article-254:- Inconsistency between laws made by parliament and laws made by legislature of States
In Crux: – It provides that laws made by parliament shall prevail over law made by legislature of the state.
√ Petroleum Crude,
√ High Speed Diesel,
√ Motor Spirit (Commonly known as Petrol),
√ Natural Gas,
√ Aviation Turbine Oil.
3.) Article – 269A:- Levy and Collection of Goods and Services Tax in course of Inter-state trade or Commerce
Clause – 1
Goods and Services Tax on supplies in the course of Inter-state Trade or Commerce shall be levied and collected by the Government of India and such tax shall be apportioned between union and states in the manner as may be provided by the parliament by laws on the recommendations of the GST Council.
For the purpose of this Clause, supply of Goods and Services or both in the course of import into territory of India shall be deemed to be supply of goods, or services, or both in the course of inter-state trade or commerce.
In Simple words,
Clause – 5
Parliament may, by law, formulate the principles for determining
4.) Compensation to States for loss of revenue on account of introduction of Goods and Services Tax:-
Parliament may, on the recommendation of GST council, compensate to the states for loss arising because of implementation of Goods and Services Tax (GST) but for a maximum period of 5 years.