CONSTITUTIONAL POWERS OF TAXATION

Constitution of India is the supreme law of India. It lays down the framework defining fundamental poi
principles, establishes the structure, procedures, powers and duties of government institutions ands
fundamental rights, directive principles and the duties of citizens. Constitution of India thus las
foundation brickfor arranging the powers, duties and the supremacy to legislate all laws ofIndia. lnea
to levy a tax is hence derived from the Constitution of India.
/nou

Arige246 oftheIndian Constitution,lays down threetypes oflists and distributes legislative power
taxation, between the Parliament of India and the State Legislatures. It lays down the suojeu mates
respect to which only the Parliament can make rules, where the State Legislatures can exCIusivelylaydow This
rules and a Concurrent List whereby both the Parliament as well legislate
as State Legislatures caln
Constitution of India allocates the power to levy various taxes between lc
states
the Centre and the ta
ono r tiee

ajor step and an essential reakthroug

eoct taxes. Althougn primarily VAI was
ed
ofindir
successful, there
The reasons for such shortcomings was that there was a were certain shortcomings in the
eos Such as luxury tax, entertainment tax, etc., which were mosaic of taxs being levied on
e of
VAT

s e r v i c e s ,

d g thehenefits of comprehensive tax credit mechanism.

hot subsumed in the VAT thereby
b Further to this, many other taxes were
Do Central Government and the State Government on
production, manufacture and distributive
cet-off available in the form of input tax credit. These
o t h

was
hereno taxes added to the cost of goods
ad to tax on tax i.e., cascading of taxes and the erstwhile indirect tax regime was ineffectiveandto
taxes.
effectof
hiscascading
eeswere being levied and collected exclusively under their respective entries in Union and
Article 246,
rarcated by
Cervices Tax regime of indirect taxes brought a single tax which was levied on supply of goods or
with concurrent jurisdiction of Centre and states. This led to bringing about amendmentsin the
at both
& Services Tax.
ation sothat they may Simultaneously levy and collect Goods
Constitution (One Hundred and First Amend ment) Act, 2016
nstitution of India has been amended by the
ns purpose. Ft Countmy Implemanted in rante
been inserted to enable levy of tax on
laws and services, Article 246A has
governing goods
rngout GST teritories.
simultaneously both by Centre and states/ union
s and services

ONSTITUTION AMENDMENT ACT, 2016

dlole246A
for the Goods & Services
Amendment Act, 2016, especially
Constitution (101st)
246A was inserted by
Article 246A provides that: Article 254, Parliament, and subject
to clause
246 and
contained in Article and services tax
NOIWithstanding anything make laws with respect to goods
have power to
Legislature of every State,
,tne such State.
mposed by the Union or by to goods and services tax
where the supply
with respect
make laws
power to trade or commerce
aflament has
exclusive course of inter-State
in the
or both takes place in Article 279A (5),
goods, or of services,
and service tax referred to
in respect of goods
ujhaaanation: Provisions of Article 246A, shall, the Goods and
ndaFroOvisions Services Tax Council.

by
recommended
the States and
UVe from the
date
and bythe legislatures of
Parliament
of laws made by the Legislatures
by
of States.
subject matter and laws made
Oeals with
Inconsistency
between laws made by Parliament
(StaBe el 1mopbopae
with toilyRvglent
f Con tace Congen
endment to Article 248
Article 248(1) reads as follows
s-opPregident)
tidle 248 con Powers of legislation.
O8 contains the Residuary State uoi|/ pRvau
546 EP-TL
Article 248(1) Subject to Article 246A, Parliament has exclusive power to make anv
matter not enumerated in the Concurrent List or State List.
aw with
Article 248(2) Such power shall include the power of making any law imposing a tax
respect fs
not
of those Lists.
mentioned in
Amendment to Article 249
Article 249 deals with the power of Parliament to legislate with respect to aa matter in t+
in the matter
national interest. After amendment Article 249(1) reads as follows State List
Article 249(1) : Notwithstanding anything in the foregoing provisions of this Chapter, if the
has declared by resolution supported by not less than two-thirds of the members present an
the Council
of Sa
Votin ha
necessary or expedient in the national interest that Parliament should make laws with resnentg
services tax provided under Article 246A or any matter enumerated in the State List specifier in900
it shall be lawful for Parliament to make laws for the whole the r
or any part of the territory of Indla wihr
matter while the resolution remains in force. spect tota
Amendment to Article 250
Article 250 deals with the power of Parliament to legislate with respect to any matter in the
State lie,
Proclamation of emergency is in operation. After amendment Article 250(1) reads as follows-
Article 250(1) - Notwithstanding anything Chapter, Parliament shall, while a Proclamation of Emergp
in this
is
in operation, have power to make
respectogos
laws for the whole or any part of the teritory of India with
and services tax provided under Article 246A or any of the matters enumerated in the State List.

Amendment to Article 268

Article 268 deals with duties levied by the Union but collected and appropriated
proposes deletion of some words. After amendment, Article 268 reads as follows
by the states. The amendnas
Article 268(1): Such stamp duties as are mentioned in the Union List shall be levied bythe Govermnst
India but shall be collected -

In the case where such duties are leviable within any Union territory, by the Government of Indla, ail
In other cases, by the States within which such duties are respectively leviable.
t formpe
Article 268(2): The proceeds in any financial year of any such duty leviable within any State silaiu
of the Consolidated Fund of India, but shall be assigned to that State.

Omission of Article 268A

l o na n dStates.
Article 268A dealt with service tax levied by Union and collected and appropriated by the Umo
has been omitted being irrelevant.

Amendment to Article 269

Article 269 deals with taxes levied and collected by the Union but assigned to the states
The amended Article 269 (1) reads as follows- O fg o o d se x c e p

Article 269(1) Taxes on the sale or purchase of goods and taxes

on the consignin
orovided in Article 269A shall De levied and collected by the Government of India but sna
n e manner
p r o v

he deemed to have been assigned to the States on or after the 1st day of April, 1990
in clause (2).
 Vtept tuth 3.GST Kae Wak
oneitany KGSTLesson 11
8 - U T

s l e2 6 9 4 d i t h
Concept of Indirect Taxes at a Glance 547
LOqta na UGAT
a n t i l e
2 6 9 4
CGST SGST
to rted Article 269 provides for levy and lection of goods and services tax in course
of inter
any ewy
t r a d e o rc o m m e r
erce
that goods and services tax
supplies in the course of inter-State trade or commerce
either 69A(1)
provides
on

dcollected by the Government of India and such tax shall be apportioned between the Union
ner as may be provided by Parliament by law on the recommendations of the Goods
in the manne
States
Senvices lax Council.

the to this clause provides

otion
that supply of goods, or of services, or both in the course of import into
of services, both in the course of inter-state
e m t o yf
o fIIndia
ndi shall be deemed to be supply of goods, or or

tates
it itis
o rc o m m e r c e .

HonTrated Goods&
Services Tax Act, 2017 was passed by Parliament on the basis of Article 269A
and e integrated

tion, under clause (1) shall not form part of the Consolidated
e RGA (2) provides that the amount apportioned
2
that n do flndia.

as tax levied under clause (1) has been used for payment
GA(3) provides that where an amount collected
shall not form part of the Consolidated Fund of India.
faxlevied by a State under Article 246A, such
amount
h etax

collected a s tax levied by a State under article 246A has been

if a
e 269A (4) provides that where an amount such amount shall not form part of the Consolidated Fund
under clause (1),
for payment of the tax levied
h e State.
ncy
ds by law, fomulate the principles for determining the place of supply,
de 269A(5) provides that the Parliament may, in the course of inter-state trade or commerce.
of goods, or of services, or both takes places
when a supply
270
Amendment to Articie
amendment Article 270 (1)
ent between the Union and states. After
iole 270 deals with distribution of
revenues

sadsas follows
the duties and taxes referred to in
All taxes and duties referred to in the Union List, except
icle 270(1) - to in Article 271 and any cess
on taxes and duties referred
icles 268, 269 and 269A, respectively, surchargeParliament shall be levied and collected by the Government
any law made by
IEd forspecific purposes underbetween the Union and the States in the
manner provided in clause (2)
be distributed
Thdia and shall
1 henewly inserted clauses are
shall also be distributed
the Union under clause (1) of Article 246A
10e 270(1A) The tax collected-
by
clause (2).
Union and the States in the manner provided in
Neen the and article 269A,
and collected by the Union
under clause (2) of article 246A
2/0(1B) The tax levied
of article 246A, and the
-

the Union under clause (1)

a s been used for payment of the tax levied by the Union
shall also be distributed between
to the Union under clause (1) of article 269A,
pportioned
he States in the manner provided in clause (2).

Nendment to Article 271

Union. After amendment,
tide 271 deals with surchar taxes for the purpose of the
on certain duties and
dle 271 reads
as follows-
ticle 271-Notwithstanding at any time increase any of
Articles 269 and 270, Parliament may
te g anything in
services tax under
Article 246A, by a
es or the goods and
taxes referred to in those Articles, except form part of the
of any such surcharge shall
of the Union and the whole proceeds
solida Cpurposes
SOlidated Fund of India.
 kave
balci fhdilo r a d
548 EP-TL

GOODS AND SERVICES

TAX COUNCIL 2/9A
a f t e r Article
279 which
deals witn Goods
Article
new
proposed to insert a
O tne Act

Services Tax Council. Amendment Act. 204n

6
inserted by the
Constitution
(101st)
Nith efect irom
onsequently,
Article 279A was

September 12, 2016

Article 279A VVIm

from the date commencement
of
or the Constitution e

Servio.
One Hundret an
() The President shall, within sixty days

2016, by order,
constitute a
Council to be
c a l l e d the Goods and
Services 1ax Counec
hirst Amendment) Act,
consist of the following members, pamely :
Council shall Nyimala rta Yárna
The Goods and Services Tax
2
Minister...
....Chairperson; AnUrcg habuy
a t h e Union Finance ... Member
Finance..
or

b t h e Union Minister of
State in charge of Revenue
or any other
Minister nominated h
or Taxation
(C)the Minister in charge of Finance State
Government.. ..Members.
to in sub-clause (c) of clausa (o
Tax Council referred (2) shal
of the Goods and Services
3The Members
themselves to be the
for sueb
Vice-Chalirperson of the Council for such
SOon as may be, choose one amongst peiod as
they may decide.
make recommendations to the Union and the States on
4The Goods and Services Tax Council shall
the States and the local bodies which me
(athe taxes, cesses and surcharges levied by the Union, may be
subsumed in the goods and services tax;

exempted from the goods and services tax

4bthe goods and services that may be subjected to,
or

(cmodel Goods and Services Tax Laws, principles

of levy, apportionment of Goods and Services Tax
leviedon supplies in the course of inter-State trade or commerce under article 269A and the principles
that govern the place of supply;

dthethreshold limit of turnover below which goods and services may be exempted from godsai
services tax;

e the rates including floor rates with bands of goods and services tax;
a n y special rate or rates for a specified period, to raise additional resources during any naturalcae
or disaster

g special provision with respect to the States of Arunachal Pradesh, Assam,

and
Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Utarakhan.a
(hany other matter relating to the goods and services tax, as the Council may decide.
taxDe
(5) The Goods and Services Tax Council shall recommend the date goods andS which the
levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), naturalga igto
on

turbinefuel 5A, Ub-eee t5) No GST ClaTae

(6)While discharging functions conferred by this article, the Goods and
the Tn QuIded

Services Tax Counu

bythe need for a harmonised structure of goods and services
harmonm

tax and for the developii

national market for goods and services
h eq u o n

(7)One-half of the total number of Members of the Goods and

at its meetings
Services Tax Council shall co

Tobace 2 GST Eise Auty (Powe CG)

o L LEV EakdkCele
 Lesson 11
Concept of Indirect Taxes at a
Soiincil shall Glance 549
G o o d sa n aS e r v i c e s
determine the
proceaure in the
and Services Tax Council shall be taken at a
performance of its functions.
the
decision
of
weighted
tas of the members present and meeting, by a majority of not less
er -fourths ofthe voing, in accordance with the
p e s ,
1 a m e
following
Central Government
shall have a weightage f one-third of the
vote ofthe total votes
he
the Covernments taken togetneT Shall nave a
t a Govern
State cast, and
votes ofal/ weightage of two-thirds of the total
the
that meeting.
in
cast,
votes
eedings of the Goods and
a Goo
Services lax Coundil snail be invalid
Noact merely by reason of-
cancy in, or any
defect the constitution of the Council; or
any
defect in the appointmen of a person as a lember of the Council; or
any
procedu
irregularity of the Council not affecting the merits of the case.
any
ds and Services Tax Council shall establish a mechanism to adjudicate any dispute
e Goods

t e n the Government of India and one or more States; or

between
n the Government of India and any State or States on one side and one or
fhe Gover
more other States on
the other side;
or

hen
etwe two or more States, arising out or the recommendations of the
Council or implementation
thereof.

nCTCouncil has been constituted under Article 279A to make recommendations to the Union and States
se faxes, cesses and surcharges levied by the Centre, the States and the local bodies which are subsumed
thetaxes,

teGST.

ings about certainty and breaks trade barriers and entry barriers among the states of India including Jammu
ashmilr.

s Aride279A (1) provides that the President shall, within 60 days from the date of the commencement of
t byorder, constitute a Council to be called the Goods and Services Tax Council. Article 279A(2) provides
0onstitution of GST Council as under
Union Finance Minister - Chairperson;

The Union Minister of State in charge of Revenue or Finance- Member,

e Vinister in charge of Finance or Taxation or any other Minister nominated by each State Government
-Members.
S a l l , as soon as may be, choose one amongst themselves to be the Vice Chairperson orthe
IGl for such period as they may decIde.
mechanism
ism of GST Council
would ensure harmonization on different aspects of GST between the
ite and the s a is as well as among
2016 states. It has been provided in the Constitution (101stAmendment
that the GST Council, in discharge of its various functions, shall be guided by the need for a
Onized structur of GST and for the develop of a harmonized national market for goods and
Ces

Gndment of Article 286

286 deals with After
the restrictions as to imposition of tax on the sale or purchase of the goods.
ent, Article 286 reads as
folloWS.
550 EP-TL
imposltion of, a tax on the

Article 286 (1) No law

-
of a State shall
impose, or
authorize the
supply of goot
place
where such supply takes
ofservices or both,
1. Outside the State; or
botn into, or export of the
or
services or good or
of the goods
2. In the course of the import
India.
sevices t
both out of, the territory of determining when a supplvof
formulate principles for ds of senice
Parliament may by law
Article 286 (2) clause (1).
-

mentioned in
in of the ways
or both takes place any

Amendment Article 366

of some
Article 366 defines words. Clause (12A) is proposed to be inserted after clause (12). Tho
hes newh
or both e
clause (12A) defines the term 'goods and services tax' as any tax on supply of goods, or servicenlendbr

consumption. a p p l i a | Fo OAole n
the alçoholicliquor for human
taxesonthe supply of J l y 90 tef (26A) defines the term
mplemenfe don 1St
Clause
have been inserted after clause (26). vices
Clauses (26A) and (26B)
anything other than goods.
articles 246A, 268, 269, 269A and 279A
defines the term 'State',
with reference to including a
Clause (26B)
Union territory with Legislature.

Amendment of Article 368

Constitution and procedure therefor.
of Parliament to amend
Article 368 deals with the power

Amendment of Sixth schedule

as to the
administration of tribal areas in the States of Assam
Sixth schedule deals with the provisions
Meghalaya, Tripura and Mizoram.
Councils to a s s e s s and collect land revenueand
with powers of the Regional
Para 8 of the schedule deals 8(3) reads as follows-
Clause (e) after clause (3) (d)
has been inserted. After this para,
impose taxes.
anyof
levy and collect all
or
autonomous district shall have the power
to
(3) The District Council for an
taxes within such district,
that is to say -

following

(a) taxes on professions, trades, callings and employments;

taxes on animals, vehicles and boats
(b) goods
camed
n
and
nd
9o0u
entry of goods into a market for sale therein, and tolls on passengers
(c) taxes on the
ferries,
taxes for the maintenance of schools, dispensaries or roads.; and
(d)
taxes on entertainment and amusements.
(e)
Amendment of Seventh Schedule
Seventh Schedule deals with three types of Lists viz., Union List, State List and Concurrent Lis
84,Duties of excise on the following goods manufactured or produced in India, namely-

Petroleum crude;
High speed diesel;

Motor spirit (commonly known as petrol);

 )GST detinahim boPd
11)tranmca ontumphion A
11 olpsson Concept of Indirect Taxes at a Glance 551
Natural g a s ; 6 0 Countrjes- 161. Indin
Aviation
urbine fuel; L 6 h May QS R3 hug 20l6
and

Tobacco
and tobacco products.
Presei6oi|dh
itonth p -SOk
above
above 66items
i central excise duty is continued to be levied. On 1 to 5
n the only Central excise duty is
oe and
Veda
But on item No. 6 both GST and Central excise duty are imposed.
GST. Bu
no GST.

o
(Taxes on
ntres92 (Ta the sale or purchase of newspapers and on advertisements published therein) and 92C
v eb e e n o m i t t e d .
7dax 8Tox Tox
ing
EuSting
Entry 54 in the tate List substituted as under: ACT aTax
Entry 54: Taxes on the sale of petroleum crude, high speed diesel, motor spirit (commonily known as
Entry 54:
natural gas, aviation turbine fuel and alcoholic liquor for human consumption, but not including sale in
a pOilrse of inter-State trade or commerce or sale in the course of international trade or commerce of such
00S.
IGST is payable
ote: On the above petroleum products imported,
Enty62 in the State List substituted:
amusements to the extent levied and collectedbya Panchayat or
aMunicipa
and
2 Taxes on entertainments
District Council.
raRegional Council ora Entry No.t
on entertainments and amusements collected by local bodies are taxable under
.E Onily taxes
GST
Hothers have been subsumed under
eTollowing entries have been deleted
therein.
into a local area for consumption, use orsale
Taxes on the entry of goods
T u y No. 52 publishedin the newspapers&
-

advertisements
other than
2 55 -
Taxes on
advertisements

y No or television.
davertisements broadcast by radio
COLLECTIONS
n
DEFICIT
IN TAX
 MFORTANT ARTICLE
552 EP-TL

Article 246A Article 269A Article 279A

Inserted Inserted Inserted
Parliament to
A federal body
Overrides levy IGST on
Article 246 constituted by
interstate supp president on 15th
Import /export September, 2016
States can
is a deemed
levy tax on
goods &
interstate Union FM, Union
suppy minister of state +
services state FMMs

only parliament IGST distributed

canlevy tax on between centre
interstate & state /UT Union-1/3 weightage
supplies

2 Parliament to States-2/3weightage
determine place
e6&A-Denahimof GST & time of suppy

96496A) - " ofSeie Decision by 3/4th at least

All powerful Body to re-commendon

numerous issues
 Basicsummary of Goods & Services Tax

The first country to implement Goods & Services Tax was France in as early as 1954.
Indiahas the highest tax slab in the world i.e., 28%, next only to Argentina which is at 27%
here
S.
an Almost 160 countries around the world follow this scheme ofindirect taxation
ne Indian GST has four rate structure, viz. 5%, 12%, 18% and 28% with cess on sin goods and luxury
ve items

Y There is a special rate of 3% on precious metals like gold

by
GST is cOvered under five legislations i.e., Central GSTAct, State GSTAct, Integrated GSTAct, Union
eritory GST Act and GST (Compensation to States) Act
e
integrated GST, Compensation cess and Central GST are charged by Central Government
aS
their implementation are based on the recommendations of the GST Council
All taxation policies and
na
ter Ihetaxable event under GST is supply

GST Bill was introduced urder 122nd Constitutional Amendment Bill, but passed under 101st
Amendment Act,2016 apDRUR
9PPauP
was the first state to pass State GST Bill
A
Ssam was the first state to ratify GST Bill but Telangana
in Delhi. he Union Finance Minister is the
S Council was constituted with its headquarters
Chairperson
State Finánce Ministers are members of GST Council
 GST LtoMbind) .CGRG
- LI ( 1 .4)
)
554 EP-TL
JCtCI.to),}DEC
1 s t July will be observed as the GST day NCE (lor) (tDx) ,ibRBAte e
The threshold limit under GST is Rs. 20 Lakhs, for some specialcategory states it is Rs. 10 1abe
khs
T h e r e is a special purpose vehicle called GSTN which caters the T needs of GST. GSTN
Comes
under Companies Act, 2013 with combined stake of Centraland State Governments is 499
lo. The
restis contributed by LIC Finance with 11% and ICICl Bank, HDFC, HDFC. Bankand NSE Sir
Investment Corporation with 10% each.
T h e GST Council recommended a uniform policy on e way bill which is being implemented alloNr
the This eliminates the checkpost system breaking the
country. totally entry barriers and reducing
bottlenecks in transportation
6ST Council has also reviewed the rate structure of GST on goods and services. It alsorecommended
reduction of rates on cases of merit.
NOPRE GST TAX STRUCTURE& DEFICIENCIES
556 EP-TL

dMultiplicity of compliances: Pavment of tax to various authorities, different due dates

tes,
Teruna process at various levels made the taxation system more complex and led

Compliance co_t.
ssessmen
an increas n
Further, there was inbuilt cascading effect of taxes due to:

) Lack of Cross-utilization facility between goods and services : laxes paid on procureme
purchases were not allowed to be set off against output tax payable on services and vice v Inpur
ersa.
(i) Non-availability of set off arrangement against other State or Central Government levies .
CST
one state was not available as set off against sales tax payable in another state. Similarly paid in
were not available as credit to set off against the taxes payable at the state level and vice
Excise duty and service tax paid on goods could not be used to pay VAT or CST. In the samo
vice versa. E.q
Credit (TC) could not be used to pay excise duty or service tax. ay,\

Plethora of
laxes

No inter Numerable
state-Centre Taxable
set off Events

Problems
of
Previous
Regime
No cross
utilisation
between Double
goods & 1axation
services

Multiplicity of
Comp liances

ADMINISTRATION OF INDIRECT TAXATION IN INDIA

Framework of GST
India is a federal cOuntry where both the Centre and the states
collect taxes through respective have been assigned the and
legislations. Both the
levels of powers to
ievy
have distinct responsibilities to perform according to the divisionGovernment
of powers prescribed in the Constitutio.2level,
i.e., at Centre and at the stait
GST is thus implemented keeping in mind the Adual
Constitutional requirement of
Along with the amendment in the fiscal federalism
Constitution,
GST, four legislations were given assent to
empower the Centre and the collect t
by the states to levy and
The Central GST Act, 2017
President on Aprit 12,2017, which include:
The Integrated GST Act, 2017
The GST (Compensation to States) Act, 2017
and
The Union Territory GST Act, 2017
ADII

MINISTRY OF FINANCE

REVENUEDEPARTMENT
CBIC
REGIONS
ZONES
COMMISSIONERATES
DIVISIONS

AUTHORITTY HEADED BY
MINISTRY OF FINANCE |Union Finance Minister

REVENUE DEPARTMENT Revenue Secretary

CBIC(Central Board of Indirect Taxes & Customs) Chairman and Members

REGIONS |Principal Chief Commissioners

ZONES Chief Commissioners

COMMISSIONERATES Commissioners/ Principal Commissioners

DIVISIONS Divisional officers/ deputy commissioner etc.

GST
Council is the apex body for making recommendations on various issues relating to policy making.
ormulation
nof of principles, implementation of policies under Goods and Services
Tax regime.

Admi n istr
Strationat
ndirect Taxes
ion and Procedural Aspects of Goods and Services tax are administered by the Centrai Board of

axes&Customs (CBIC) whichis underthe control ofthe Depatment of Revenue, Ministry of Finance.
EXISTNG TAX STRUCTURE
Pass?
a8sage of GST in India
Goods &Dervices Tax is prevalent in almost 160 countries around the world and France was the first countr
s int
uce the same in 1954. The journey to introduction oT GS| n naa naS been long and is a result of
 O al control, aha dspecis of
OT (GST:
evenue Neutr: Rates
Committee on GST and eshold and exem
GST on ons;
rch, 2013: A nnot for nports.
Marc
of Go and Servicesprofit,
1ax non-Government, private limited
Network
imarily to provide IT
infrastructure (GSTN) special company
and
as pany was
incorporated in the name
other stakehold for services to purpose vehicle
and
:
gust, 2013: The
implementation of GST. entral and State setup by the Goverr
the Cer
Government(s),
ent

endations Parliamentary
tax payers
ers
c o m m e r

Standing Committee
of the
Empowered
Aing Committee submitted its
the
were
examined byCommittee
the
and the Report to the Lok Sabha. The
recommendatications of the
f the
Most of
recommendations made by the Ministry in consultation with the Legislat Parliamentary
Legislative Department.
Commite
accepted and the Draft
were ac
Empowered Committee and the
September, 2013: The final draft
Amendment Bill was suitably Parliamentary Standing
revised.
Empowered Constitutional
changes was sent to the
Committee (EC)Amendment
for
Bill
incorporating the above stated
Mavember, 2013: The EC once consideration.
inShillong. Certain again made certain
recommendations of which were recommendations on the Bill after its
Amendment) Bill and the revised draft was incorporated in the draft Constitutionmeeting
(115th
again sent to EC for its
June, 2014: The draft
Constitution Amendment
consideration.
Committee after approval of the new Government. Bill in March, 2014 was sent to the Empowered
December, 2014: The Constitution (One Hundred and
to amend the Constitution to introduce GST and Twenty-Second Amendment) 2014 seeking
subsume state Value Added Tax,Bill,
tax, luxury tax, etc. was introduced in the Lok Sabha on Octroi and entry
Finance, Mr. Arun Jaitley. December 19, 2014 by the Hon'ble Minister of

May,2015: Constitution Amendment (122nd) Bill was passed by Lok Sabha on

May 06, 2015
May, 2015: In Rajya Sabha, Bill was referred to a 21-member Select Committee of Rajya Sabha.
July,2015: Select Committee submitted its report to Rajya Sabha on July 22, 2015.
June, 2016: On June 14, 2016, the Ministry of Finance released draft model law on GST in public
domain for views and suggestion.
August, 2016: On August 03, 2016, the Constitution (122ndAmendment) Bill, 2014 was passed by
Ralya Sabha with certain amendments.
ugust, 2016: The changes made by Rajya Sabha were unanimously passed by Lok Sabha, on August
08, 2016
adopted by majority of State Legislatures
wherein approval of at least
September, 2016: The Bill was

50%of the State Assemblies was required

was given on 8th September.2016
President of India
September,
ember, 2016: Final assent of Hon'ble
four billS
the following
2017: Parliament passed
BIl
Goods and Services Tax (CGST)
entral
Services Tax(lGST) Bill
rated Goods and
560 EP-TL

Union Territory Goods and Services Tax (UTGST) Bill

Goods and Services Tax (Compensation to States) Bill

xxii) April, 2017: President's assent was given to four key legislations on Goods andSenir
vices tax
xxiv July, 2017: GST became a reality
The current status of GST Laws Passed in India is as under:

The law
Purpose
The Central Goods and Services Tax Act, 2017 To levy, collect CGST on intra-state supplies
anti i
(CGST Act) matters
The Integrated Goods and Services Tax Act, 2017 To levy, collect IGST on inter-state suppliesand fr
(IGST Act) matters
The Union Territory Goods and Services Tax Act, To levy, collect UTGST on intra-UT supplies and for
2017 (UTGST Act) t
matters
GST (Compensation to States) Tax Act, 2017 To compensate states for the loss of revenueifany
introduction of GST
The States Goods and Services Tax Act,
2017To levy, collect SGST on intra-state suppliesandlfor at
(SGST Act) matters

GST in India
GST is one of the biggest taxation reforms of State econ

GST, the most historic indirect tax reform, isindependent India with the objective of integrau
grow
Nation along with supporting the Make in lIndia implemented with the aim of enhancing ng
the
overall

le, unified Indla

throughout the Mation lt initiative. It aims at creatinga singie
 Lesson 11 Con
oncept of Indirect Taxes
es have beer
sumed under GST at a Glance 561
TO
Central
Taxes State
Taxes

Central EXcise Duty

State VAT

Duties of Excise
(Medicinal
and Toilet Central Sales Tax
Preparations)
Additional Duties of
Excise (Goods of
Purchase Tax
Special Importance)

Additional Duties of
Excise (Textiles and Luxury Tax
Textile Products)

Additional Duties of Entry Tax

Customs (commonlyy (All forms)
known as CVD)

Entertainment Tax
Special Additional (except those levied
Duty of Customs
by the local bodies)
(SAD)

Taxes on
Service Tax advertisements

Cesses and sur-

far as
charges in so
they relate to supply
of goods or services
Taxes on lotteries,
betting and gambling
State cesses and
surcharges in so far as
they relate to supply of
goods or services
 562 EP-TL ing ohich ae lept oth hom G97
of GST.As such these are taxed nde
h e following subject matters kept outside the purview e eistir
of centre and states as the case may be.

Alcohol for human

Consumption

Entertainment tax Petroleum Products

collected by local petroleum crude, motor
bodies spirit (petrol), high speed
diesel, natural gas and
aviation turbine fuel

Motor vehicles tax Electricity

Property taxes, such

as stamp duty

Tobacco and tobacco products would be

subject to GST. In addition, the Centre would have tne
po
Central Excise duty on these products.

IOT
AloT Models of GST