Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 13-9-2016 Last Replied Date:- 14-9-2016 – The long awaited amendment of Constitution for the purpose of goods and services tax has got the assent of the President on 08.09.2016 and also published in the Official Gazette. It is called as the Constitution (One Hundred and First Amendment) Act,2016 ( Act for short). Effective date The Act has not come into effect immediately on the date of publication in the Official Gazette. Section 1(2) of the Act provides that the Act shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the commencement of that provision. Special provisions with respect to goods and services tax Section 2 of the Act inserts a new Article 246A. The newly inserte
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cle 248 (1) – Subject to Article 246A, Parliament has exclusive power to make any law with respect to any matter not enumerated in the Concurrent List or State List. Article 248 (2) – Such power shall include the power of making any imposing a tax not mentioned in either of those Lists. Amendment to Article 249 Article 249 deals with the power of Parliament to legislate with respect to a matter in the State List in the national interest. Section 4 of the Act proposes amendment in Article 249. After amendment Article 249(1) reads as follows- Article 249 (1) – Notwithstanding anything in the foregoing provisions of this Chapter, if the Council of States has declared by resolution supported by not less than two-thirds of the members present and voting that it is necessary or expedient in the national interest that Parliament should make laws with respect to goods and services tax provided under Article 246A or any matter enumerated in the State List specified in the resolution, it shall b
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endment Article 268 reads as follows- Article 268 (1) Such stamp duties as are mentioned in the Union List shall be levied by the Government of India but shall be collected- In the case where such duties are leviable within any 226 (Union territory) in other cases, by the States within which such duties are respectively leviable. 268 (2) – The proceeds in any financial year of any such duty leviable within any State shall not form part of the Consolidated Fund of India, but shall be assigned to that State. Omission of Article 268A Article 268A deals with service tax levied by Union and collected and appropriated by the Union and States. Section 7 of the Act proposes to omit this Article 268A. Amendment to Article 269 Article 269 deals with taxes levied and collected by the Union but assigned to the States. Section 8 of the Act proposes amendment to Article 269. The amended Article 269 (1) reads as follows- Article 269 (1) – Taxes on the sale or purchase of goods and taxes on the consig
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be supply of goods, or of services, or both in the course of inter-State trade or commerce. Article 269A(2) provides that the amount apportioned under clause (1) shall not form part of the Consolidated Fund of India. Article 269A(3) provides that where an amount collected as tax levied has been used for payment of the tax levied by a State under Article 246A, such amount shall not form part of the Consolidated Fund of India. Article 269A (4) provides that where an amount collected as tax levied by a State under article 246A has been used for payment of the tax levied under clause (1), such amount shall not form part of the Consolidated Fund of the State. Article 269A(5) provides that the Parliament may, by law, formulate the principles for determining the place of supply, and when a supply of goods, or of services, or both takes places in the course of inter-State trade or commerce. Amendment to Article 270 Article 270 deals with distribution of revenues between the Union and States.
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nion under clause (1) of article 269A, shall also be distributed between the Union and the States in the manner provided in clause (2). Amendment to Article 271 Article 271 deals with surcharge on certain duties and taxes for the purpose of the Union. Section 11 of the Act proposes amendment in Article 271. After amendment Article 271 reads as follows- Article 271 – Notwithstanding anything in articles 269 and 270, Parliament may at any time increase any of the duties or taxes referred to in those articles, except the goods and services tax under Article 246A, by a surcharge for purposes of the Union and the whole proceeds of any such surcharge shall form part of the Consolidated Fund of India. Goods and Services Tax Council Section 12 of the Act proposes to insert a new Article 279A after Article 279 which deals with Goods and Service Tax Council. Constitution of GST council Article 279A (1) provides that the President shall, within 60 days from the date of the commencement of the Act
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plies in the course of inter-State trade or commerce under Article 269A and the principles that govern the place of supply; the threshold limit of turnover below which goods and services may be exempted from the goods and services tax; the rates including floor rates with bands of goods and services tax; special provisions with respect to the States of Arunachal Pradesh, Assam, J&K, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and any other matter relating to the goods and services tax, as the Council may decide. Article 279A (5) provides that the Council shall recommend the date on which the GST be levied on petroleum crude, high speed diesel, motor spirit, natural gas and aviation turbine fuel. While discharging the functions, the Council shall be guided by the need for a harmonized structure of GST and for the development of a harmonized market for goods and services. The Council shall determine the procedure in the performance of its
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more States; or between the Government of India and any State or States on one side and one or more other States on the other side; or between two or more States arising out the recommendations of the Council or implementation thereof. Amendment of Article 286 Article 286 deals with the restrictions as to imposition of tax on the sale of purchase of the goods. Section 13 of the Act proposes amendments in Article 286. After amendment Article 286 reads as follows: Article 286 (1) – No law of a State shall impose, or authorize the imposition of, a tax on the supply of goods or of services or both, where such supply takes place- outside the State; or in the course of the import of the into, or export of the goods out of, the territory of India. Article 286 (2) – Parliament may by law formulate principles for determining when a supply of goods or services or both takes place in any of the ways mentioned in clause (1). Amendment of Article 366 Article 366 gives definition for some words. Se
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of sixth schedule Sixth schedule deals with the provisions as to the administration of Tribal areas in the States of Assam, Meghalaya, Tripura and Mizoram. Para 8 of the schedule schedule deals with deals with the powers of the Regional Councils to assess and collect land revenue and impose taxes. Section 16 of the Act proposes to insert clause (e) after clause (3) (d) . After this para 8(3) reads as follows- (3) The District Council for an autonomous district shall have the power to levy and collect all or any of the following taxes within such district, that is to say – (a) taxes on professions, trades, callings and employments; (b) taxes on animals, vehicles and boats; c) taxes on the entry of goods into a market for sale therein, and tolls on passengers and goods carried in ferries; (d) taxes for the maintenance of schools, dispensaries or roads.; and (e) taxes on entertainment and amusements. Amendment of seventh schedule Seventh Schedule deals with the three types of List viz., U
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ntry 62 in the State List- 62. Taxes on entertainments and amusements to the extent levied and collected by a Panchayat or a Municipality or a Regional Council or a District Council. The section proposes to delete the following entries- Entry No. 52 – Taxes on the entry of goods into a local area for consumption, use or sale therein. Entry No. 55 – Taxes on advertisements other than advertisements published in the newspapers and advertisements broadcast by radio or television. Compensation to States for loss Section 18 of the Act provides that Parliament shall, by law, on the recommendations of the GST Council, provide for compensation to the States for loss of revenue arising on account of implementation of the goods and service tax for a period of five years. Transitional provisions Section 19 of the Act provides that notwithstanding anything in this Act, any provision of any law relating to tax on goods or services or on both in force in any State immediately before the commencement
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