One Hundred and First (101st) Constitutional Amendment Act, 2016
The One Hundred and Twenty Second Amendment Bill of the Constitution of India, officially known as The Constitution (One Hundred and First Amendment) Act, 2016, introduced a national Goods and Services Tax in India from 1 July 2017.
The GST is a Value added Tax (VAT) proposed to be a comprehensive indirect tax levy on manufacture, sale and consumption of goods as well as services at the national level.
Key Highlights
It replaces all indirect taxes levied on goods and services by the Indian Central and state governments.
It is aimed at being comprehensive for most goods and services. This act amends (or inserts) the Article 246 (A), Article 269A, Article 279-A and in the 7th Schedule of the Constitution.
It empowers parliament and every state to make laws with respect to the goods and services imposed by the union and by the state.
It empowers the state as well as center to enjoy concurrent powers over intra – state trade and commerce.
The power to make laws regarding inter-state trade and commerce is vested exclusively with the Central Government.
It proposed for the establishment of a Goods and Service Tax Council (GSTC) within 60 days. The members of GSTC are:
Finance minister – Chairman
Union Minister of State in Charge of Revenue or Finance.
One Nominated member of each state who is in charge of finance or taxation
