GST: Constitution 101st Amendment

Act, 2016.
Introduction
The GST Constitutional (122nd Amendment) Bill, 2014 became
the GST Constitutional (101st Amendment) Act, 2016 when the
President assented the provisions of bill on 8th Sept’ 2016.
GST Constitutional (101st Amendment) Act, 2016 contains the
provisions which are necessary for the implementation of GST
Regime.
The aim to bring about these amendments in the Constitution is to
confer simultaneous power on Parliament and State legislatures to
make laws for levying GST simultaneously on every transaction of
supply and Goods and Services.
Important Amendments
Section 2: NEW ARTICLE 246A INSERTED
This section makes enabling provisions for the Union and States with respect to the GST legislation.
It further specifies that Parliament has exclusive power to make laws with respect to GST on
interstate transactions.
Section 7: OMISSION OF ARTICLE 268A
This section seeks to omit article 268A of the Constitution. The said article empowers the
Government of India to levy taxes on services. As tax on services has been brought under GST, such
a provision would no longer be required.
Section 9: INSERTION OF NEW ARTICLE 269A – LEVY AND COLLECTION OF GOODS
AND SERVICES TAX IN COURSE OF INTER-STATE TRADE OR COMMERCE
Section 11: AMENDMENT OF ARTICLE 271
This amendment provides that goods and services on which GST is levied shall not be subject to any
surcharge under article 271.
Section 12: INSERTION OF NEW ARTICLE 279A – GOODS AND SERVICES TAX
COUNCIL
This Article gives power to the President to constitute a joint forum of the Centre and States called
the GST Council. The GST Council is an apex member committee to modify, reconcile or to procure
any law or regulation based on the context of Goods and Services Tax in India.  
Section 13: AMENDMENT OF ARTICLE 286
This was an existing article which restricted states from passing any law that allowed them to collect tax on sale
or purchase of goods either outside the state or in the case of import transactions. It was further amended to
restrict the passing of any laws in case of services too. Further, the term ‘supply’ replaces ‘sale or purchase’.  
Section 14: AMENDMENT OF ARTICLE 366
The present section specifies the definition of ‘Goods and Services Tax’, ‘Services’ and ‘State’. As per the
definitions, only alcoholic liquor for human consumption has been excluded from the ambit of GST
Constitutionally.
Section 17: AMENDMENT OF SEVENTH SCHEDULE
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This section seeks to make the consequential amendments in Union List, State List and Concurrent List Entries.
Changes in the Concurrent List 
 To continue the levy of excise duty by the Centre on manufacture/production of five petroleum products namely: petroleum crude,
high-speed diesel, motor spirit, natural gas, and aviation turbine fuel. In addition to the above, excise duty is also levied on tobacco
and tobacco products. As a result, tobacco and tobacco products are subject to both excise duty and GST.
 The power to levy taxes on the five petroleum products was given to the states too.
 Entertainment tax was abolished except where it is levied by local bodies.

COMPENSATION TO STATES UNDER GST

This Act also contains a provision to provide for relief to states on account of the revenue loss to the states
arising due to the implementation of GST. It has a validity period of five years. The Goods and Services Tax
(Compensation to States) Act, 2017 was born as a result.