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STEP BY STEP ANALYSIS OF 122ND CONSTITUTIONAL AMENDMENT BILL

STEP BY STEP ANALYSIS OF 122ND CONSTITUTIONAL AMENDMENT BILL

Insertion of Article 246A: This Article was inserted in the main body of Indian Constitution after Article 246 to empower both the Centre and State to legislate on a common matter i.e. GST. Earlier the power of both the Governments were separate under Union list and State list, Without inserting 246A it is not possible for parliament to make Law on a matter which is neither mentioned in Union List and State List. The power to make laws on interstate transactions has been kept exclusively with Central Government.

Amendment in Article 248: The article 248 has been amended to avoid contradiction between this Article and Article 246A.

The article 248 gives exclusive powers to parliament to make laws on matters not mentioned in State and Concurrent list. The amendment has added word “subject to 246A” Parliament has exclusive power to make laws on matters not mentioned in State and Concurrent list.

Amendment in Article 249: Earlier the above article was giving power to Parliament to make laws on the matters in State list if the same is necessary in the national interest. The above law can be made if the council of the states support this law by 2/3 majority. The amendment has inserted word Goods and Service tax also in this article so that Parliament can make law of GST.

Amendment in Article 250: This amendment is similar to that in 249, only difference is that this article comes into operation at the time of emergency and Article 249 comes when law is necessary in national interest.

Amendment in Article 268: Before amendment this article was giving power to Central Govt. to levy Stamp duties and Excise on Medicinal Toilet Preparations and collection powers were given to respective States. Now the amendment has deleted word Excise on Medicinal Toilet Preparations which means no more excise duty by states on Excise on Medicinal Toilet Preparations. This is a welcome move in GST to reduce the burden of multiplicity of taxes levied presently by State Govt.

Omission of Article 268A: This Article was giving power to Centre to levy Service tax and such tax shall be collected and appropriated by Centre and States together. Now under GST Regime no service tax exist hence the importance of this Article was no more required in the Constitution of India accordingly the same has abrogated from Constitution.

Amendment in Article 269 and Insertion of Article 269A: Before understanding the amendment made in Article 269 we have to understand the new Article 269A which grants exclusive power to Centre to levy integrated goods and Service Tax (IGST) on interstate transactions. This Article categorically says that Import of goods and Services into Indian Territory shall attract IGST. Now we can discuss 269 which was giving power to Central Govt. to levy taxes on Interstate sales i.e. CST and taxes on consignment of good and now the amendment has restricted the applicability of above article only on those taxes which are not mentioned in Article 269A i.e. IGST.

Amendment in Article 270 and 271: The Article 270 prescribe that the taxes levied by Union shall be distributed with the states and 271 has restricted the power of Parliament to increase the rate of GST by a surcharge for the purpose of Union. Under the GST Regime the increase of taxes shall be decided by the GST Council under Article 279A.

Insertion of Article 279A: In India the GST has been introduced in Dual structure i.e. Centre shall levy Central Goods and Service Tax (CSGT) and State shall levy State Goods and Service Tax (SGST) and in addition Centre shall levy Integrated goods and Service Tax (IGST). The above concept can only work on the basis of cooperative federalism between the Centre and State and this give rise to a platform where Centre and State can discuss various issues related to GST. Under 279A a council shall be constituted which shall be called GST Council consisting representation of Centre and States respectively.

STEP BY STEP ANALYSIS OF 122ND CONSTITUTIONAL AMENDMENT BILL

Gujarat VAT department has issued circular

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