CONSTITUTIONAL AMENDMENT FOR PROPOSED GST- Part-1
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 29-12-2014<\/p>\n
The Union Government on 19 December, 2014 introduced Constitution (122 Amendment) Bill, 2014 in Parliament which when passed shall pave the way for introduction of proposed Goods and Service Tax (GST) in India.
\nIt is to be very clearly understood that this is not a GST Bill. In fact, GST Bill is not in sight at all at this moment. What has been introduced is the Constitutional Amendment Bill enabling or empowering the Government to levy a tax called GST which it cannot levy under the present Constitution. The Bill on passage would enable the Central Government and the State Governments to levy GST. This tax (GST) shall be levied concurrently by various states as well as Union Government. Once this is passed by two-third majority in the Parliament, atleast 50 percent of the states will have to pass it. Once this amendment is through, the road will <\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n will have exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place in the course of inter-State trade or commerce. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ter; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n icial Gazette, appoint, and different dates may be appointed for different provisions = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \non medicinal and toilet preparations” shall be omitted. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n \n11. In article 271 of the Constitution, after the words “in those articles”, the words, = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n h respect to the States of Arunachal Pradesh, = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n to = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n h = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n use (1). = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n der made under sub-section (\/) shall, as soon as may be after it is made. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n es; = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n voting” in favour of a proposal in the Goods and Services Tax Council shall be = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n ance or = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n te List. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n s on the sale or purchase of goods and taxes on the consignment of = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n eds of any such surcharge shall form part of the = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n c) any of the Lists in the Seventh Schedule, or = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" CONSTITUTIONAL AMENDMENT FOR PROPOSED GST- Part-1By: – Dr. Sanjiv Agarwal Goods and Services Tax – GSTDated:- 29-12-2014 The Union Government on 19 December, 2014 introduced Constitution (122 Amendment) Bill, 2014 in Parliament which when passed shall pave the way for introduction of proposed Goods and Service Tax (GST) in India. It is to be very … Continue reading “CONSTITUTIONAL AMENDMENT FOR PROPOSED GST- Part-1”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-593","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/593","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=593"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/593\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
For full text:-Visit the Source <\/a><\/p>\n
\n\tClause 269A
\n * Goods and services tax on supplies in the course of inter-State trade or commerce shall be levied and collected by the government of India and such tax shall be apportioned between the Union and the States in the manner as may be provided by Parliament by law on the recommendations of the Goods and Services Tax Council.
\n * Supply of goods or services, or both in the course of import into the territory of India shall be deemed to be supply of goods or services, or both in the course of inter-state trade or commerce.
\n * 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 place in the course of inter-state trade or commerce.
\n\tClause 279A
\n * The President shall, within sixty days from the date<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n (g) special provision with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur; Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand; and
\n (h) any other matter relating to the goods and services tax, as the Council may decide.
\nWhat will Service Tax Council do
\nApart from aforementioned recommendations, it shall undertake the following –
\n * The Goods and Services Tax Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel. While discharging the functions conferred by this article, the Goods and Services Tax Council shall be guided by the need for a harmonized structure of goods and services tax and for the development of a harmonized national market for goods and services.
\n\tThe Goods and Services Tax Council shall determine the procedure in the performance of its functions.
\n\tThe Good<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nof this Act and any reference in any such provision to the commencement of this Act shall
\nbe construed
\nas a reference to the commencement of that provision.
\n2. After article 246 of the Constitution, the following article shall be inserted, namely:-
\n“246A. (1) Notwithstanding anything contained in articles 246 and 254,
\nParliament, and, subject to clause (2), the Legislature of every State, have power to
\nmake
\nlaws with respect to goods and services tax imposed by the Union or by such
\nState.
\nShort title and
\ncommencement.
\nInsertion of
\nnew article
\n246A.
\nSpecial
\nprovision
\nwith respect
\nto goods and
\nservices tax.
\nAmendment of
\narticle 248.
\nAmendment of
\narticle 249.
\nAmendment of
\narticle 250.
\nAmendment of
\narticle 268.
\nOmission of
\narticle 268A.
\nAmendment of
\narticle 269.
\nInsertion of
\nnew article
\n269A.
\n2
\n(2) Parliament has exclusive power to make laws with respect to goods and
\ns<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n5
\n10
\n7. Article 268A of the Constitution, as inserted by section 2 of the Constitution 15
\n(Eighty-eighth Amendment) Act, 2003 shall be omitted.
\n8. In article 269 of the Constitution, in clause (1), after the words “consignment of
\ngoods”, the words, figures and letter “except as provided in article 269A” shall be inserted.
\n9. After article 269 of the Constitution, the following article shall be inserted,
\nnamely:
\n20
\nLevy
\nand
\ncollection of
\ngoods and
\nservices tax in
\ncourse of inter-
\nState trade or
\ncommerce.
\n“269A. (1) Goods and services tax on supplies in the course of inter-State trade
\nor commerce shall be levied and collected by the Government of India and such tax
\nshall be apportioned between the Union and the States in the manner as may be
\nprovided by Parliament by law on the recommendations of the Goods and Services
\nTax Council.
\n25
\nAmendment of
\narticle 270.
\nAmendment of
\narticle 271.
\nExplanation. For <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nfigures and letter “except the goods and services tax under article 246A,” shall be inserted.
\n30
\n35
\n40
\n5
\n10
\n15
\n20
\n25
\n30
\n35
\n40
\n3
\n12. After article 279 of the Constitution, the following article shall be inserted, namely:-
\n“279A. (1) The President shall, within sixty days from the date of commencement
\nof the Constitution (One Hundred and Twenty-second Amendment) Act, 2014, by
\norder, constitute a Council to be called the Goods and Services Tax Council.
\n(2) The Goods and Services Tax Council shall consist of the following members,
\nnamely:
\n(a) the Union Finance Minister……
\n(b) the Union Minister of State in charge of Revenue or
\nFinance……………..
\nChairperson;
\nMember;
\n(c) the Minister in charge of Finance or Taxation or any other Minister
\nnominated by each State Government
\nMembers.
\n(3) The Members of the Goods and Services Tax Council referred to in
\nsub-clause (c) o<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nAssam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim,
\nTripura, Himachal Pradesh and Uttarakhand; and
\n(h) any other matter relating to the goods and services tax, as the Council
\nmay decide.
\n(5) The Goods and Services Tax Council shall recommend the date on which the
\ngoods and services tax be levied on petroleum crude, high speed diesel, motor spirit
\n(commonly known as petrol), natural gas and aviation turbine fuel.
\n(6) While discharging the functions conferred by this article, the Goods and
\nServices Tax Council shall be guided by the need for a harmonised structure of goods
\nand services tax and for the development of a harmonised national market for goods
\nand services.
\n(7) One half of the total number of Members of the Goods and Services Tax
\nCouncil shall constitute the quorum at its meetings.
\n(8) The Goods and Services Tax Council shall determine the procedure in the
\nperformance of its functions.
\nInsertion<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nresolve disputes arising out of its recommendation.”.
\n13. In article 286 of the Constitution,
\n(i) in clause (1),
\n(A) for the words “the sale or purchase of goods where such sale or
\npurchase takes place”, the words “the supply of goods or
\nof services or both.
\nwhere such supply takes place” shall be substituted:
\n(B) in sub-clause (b), for the word “goods”, at both the places where it
\noccurs the words “goods or services or both” shall be
\nsubstituted;
\n(ii) in clause (2), for the words “sale or purchase of goods takes place”, the
\nwords “supply of goods or of services or both” shall be substituted
\n;
\n(iii) clause (3) shall be omitted.
\n10
\n15
\n20
\n25
\nAmendment of
\narticle 366.
\n14. In article 366 of the Constitution.
\n(i) after clause (12), the following clause shall be inserted, namely:-
\n(12A) “goods and services tax” means any tax on supply of goods, or
\nservices or both except taxes on the supply of the alcoholic
\nliquor for human
\nconsumption;';
\n30
\n(ii) after clause (<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nSchedule.
\n10
\n15
\n20
\n25
\n(i) for entry 84, the following entry shall be substituted, namely:-
\n“84. Duties of excise on the following goods manufactured or
\nproduced in India, namely:-
\n(a) petroleum crude;
\n(b) high speed diesel;
\n(c) motor spirit (commonly known as petrol);
\n(d) natural
\ngas;
\n(e) aviation turbine fuel; and
\n(f) tobacco and tobacco products.”;
\n(ii) entries 92 and 92C shall be omitted;
\n(b) in List II
\nState List.
\n(i) entry 52 shall be omitted;
\n(ii) for entry 54. the following entry shall be substituted, namely:-
\n“54. Taxes on the sale of petroleum crude, high speed diesel, motor
\nspirit (commonly known as petrol), natural gas, aviation turbine fuel and
\nalcoholic liquor for human consumption, but not including sale in the
\ncourse of inter-State trade or commerce or sale in the course of
\ninternational trade or commerce of such goods.”;
\n(iii) entry 55 shall be omitted;
\n(iv) for entry 62, the following entry shall be substituted, namely:
\n“62. Taxes on enter<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n(4) Parliament may, by law, formulate the principles for determining the place of origin
\nfrom where supply of goods take place in the course of inter-State trade or commerce.
\n19. Parliament may, by law, on the recommendation of the Goods and Services Tax
\n40 Council, provide for compensation to the States for loss of revenue arising on account of
\nimplementation of the goods and services tax for such period which may extend to five
\nyears.
\nArrangement
\nfor assignment
\nof additional
\ntax on supply
\nof goods to
\nStates for two
\nyears or such
\nother period
\nrecommended
\nby the
\nCouncil.
\nCompensation
\nto States for
\nloss of
\nrevenue on
\naccount of
\nintroduction
\nof goods and
\nservices tax.
\nTransitional
\nprovisions.
\nPower of
\nPresident to
\nremove
\ndifficulties.
\n6
\n20. Notwithstanding anything in this Act, any provision of any law relating to tax on
\ngoods or services or on both in force in any State immediately before
\nthe commencement of
\nthis Act, which is inconsistent wi<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nbe laid before each House of Parliament.
\n5
\n10
\n15
\nSTATEMENT OF OBJECTS AND REASONS
\nThe Constitution is proposed to be amended to introduce the goods and services tax
\nfor conferring concurrent taxing powers on the Union as well as the States including Union
\nterritory with Legislature to make laws for levying goods and services tax on every transaction
\nof supply of goods or services or both. The goods and services tax shall replace a number of
\nindirect taxes being levied by the Union and the State Governments and is intended to
\nremove cascading effect of taxes and provide for a common national market for goods and
\nservices. The proposed Central and State goods and services tax will be levied on all
\ntransactions involving supply of goods and services, except those which are kept out of the
\npurview of the goods and services tax.
\nfor-
\n2. The proposed Bill, which seeks further to amend the Constitution, <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n(e) levy of an additional tax on supply of goods, not exceeding one per cent. in
\nthe course of inter-State trade or commerce to be collected by the Government of India
\nfor a period of two years, and assigned to the States from where the supply originates;
\n(f) conferring concurrent power upon Parliament and the State Legislatures to
\nmake laws governing goods and services tax;
\n(g) coverage of all goods and services, except alcoholic liquor for human
\nconsumption, for the levy of goods and services tax. In case of petroleum and petroleum
\nproducts, it has been provided that these goods shall not be subject to the levy of
\nGoods and Services Tax till a date notified on the recommendation of the Goods and
\nServices Tax Council.
\n(h) compensation to the States for loss of revenue arising on account of
\nimplementation of the Goods and Services Tax for a period which may extend to five
\nyears;
\n(i) creation of Goods and Services Tax Council to examine issues relating to
\ngoods and se<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\ndetermined as under:-
\nWT= WC+WS
\nWhere,
\nWT WC+WS =
\nWherein-
\n\u00c3\u2014 SF
\nSP
\n===
\nWT Total weighted votes of all members in favour of a proposal.
\n1
\nWC = Weighted vote of the Union = i.e., 33.33% if the Union is in favour of the
\nproposal and be taken as “0” if, Union is not in favour of a proposal.
\n=====
\nWS Weighted votes of the States in favour of a proposal.
\nSP
\n=====
\nNumber of States present and voting.
\nWST = Weighted votes of all States present and voting i.e., i.e., 66.67%
\nSF = Number of States voting in favour of a proposal.
\n3
\n(j) Clause 20 of the proposed Bill makes transitional provisions to take care of
\nany inconsistency which may arise with respect to any law relating to tax on goods or
\nservices or on both in force in any State on the commencement of the provisions of the
\nConstitution as amended by this Act within a period of one year.
\n3. the Bill seeks to achieve the above objects<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nTaxation or any other Minister nominated by each State Government.
\n2. The creation of Goods and Services Tax Council will involve expenditure on office
\nexpenses, salaries and allowances of the officers and staff. The objective that the introduction
\nof goods and services tax will make the Indian trade and industry more competitive,
\ndomestically as well as internationally and contribute significantly to the growth of the
\neconomy, such additional expenditure on the Council will not be significant.
\n3. At this stage, it will be difficult to make an estimate of the expenditure, both recurring
\nand non-recurring on account of the Constitution of the Council.
\n4. Further, it is provided for compensation to the States for loss of revenue arising on
\naccount of implementation of the Goods and Services Tax for such period which may extend
\nto five years. The exact compensation can be worked out only when the provisions of the Bill
\nare implemented.
\n9
\nMEMORANDUM REGARDING DELEGATE<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nResiduary
\npowers of
\nlegislation.
\n*
\n249. (1) Notwithstanding anything in the foregoing provisions of this Chapter, if the
\nCouncil of States has declared by resolution supported by not less than two-thirds of the
\nmembers present and voting that it is necessary or expedient in the national interest that
\nParliament should make laws with respect to any matter enumerated in the State List
\nspecified in the resolution, it shall be lawful for Parliament to make laws for the whole or
\nany part of the territory of India with respect to that matter while the resolution remains in
\nforce.
\nPower of
\nParliament to
\nlegislate with
\nrespect to a
\nmatter in the
\nState List in
\nthe national
\ninterest.
\n250. (1) Notwithstanding anything in this Chapter, Parliament shall, while a Proclamation
\nof Emergency is in operation, have power to make laws for the whole or any part of the
\nterritory of India with respect to any of the matters enumerated in the State List.
\n*
\nDistribution of Reven<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\ngoods shall be levied and collected by the Government of India but shall be assigned and
\nshall be deemed to have been assigned to the States on or after the 1st day of April, 1996
\nin the manner provided in clause (2).
\nExplanation. For the purposes of this clause,
\n11
\nPower of
\nParliament to
\nlegislate with
\nrespect to any
\nmatter in the
\nState List if a
\nProclamation
\nof Emergency
\nis in operation.
\nDuties levied by
\nthe Union but
\ncollected and
\nappropriated by
\nthe States.
\ntax
\nService
\nlevied by Union
\nand collected
\nand
\nappro-
\npriated by the
\nUnion and the
\nStates.
\nTaxes levied
\nand collected
\nby the Union
\nbut assigned to
\nthe States.
\n12
\n(a) the expression “taxes on the sale or purchase of goods” shall mean taxes on
\nsale or purchase of goods other than newspapers, where such sale or purchase takes
\nplace in the course of inter-State trade or commerce;
\n(b) the expression “taxes on the consignment of goo<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\nConsolidated Fund of India.
\nRestrictions as
\nto imposition
\nof tax on the
\nsale or
\npurchase of
\ngoods.
\n286. (1) No law of a State shall impose, or authorise the imposition of, a tax on the
\nsale or purchase of goods where such sale or purchase takes place
\n(a) outside the State; or
\n(b) in the course of the import of the goods into, or export of the goods out of,
\nthe territory of India.
\n(2) Parliament may by law formulate principles for determining when a sale or
\npurchase of goods takes place in any of the ways mentioned in clause (1).
\n(3) Any law of a State shall, in so far as it imposes, or authorises the imposition of,-
\n(a) a tax on the sale or purchase of goods declared by Parliament by law to be of
\nspecial importance in inter-State trade or commerce; or
\n(b) a tax on the sale or purchase of goods, being a tax of the nature referred to in
\nsub-clause (b), sub-clause (c) or sub-clause (d) of clause (29A) of article 366,
\nbe <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n
\n(d) the representation of States in Parliament, or
\n(e) the provisions of this article,
\nthe amendment shall also require to be ratified by the Legislatures of not less than one-
\nhalf of the States by resolutions to that effect passed
\nby those Legislatures before the
\nBill making provision for such amendment is
\npresented to the President for assent.
\n*
\nSIXTH SCHEDULE
\n[Articles 244(2) and 275(1)]
\nProvisions as to the Administration of Tribal Areas in the States of Assam,
\nMeghalaya, Tripura and Mizoram
\n8. (1) *
\n(3) The District Council for an autonomous district shall have the power to levy and
\ncollect all or any of the following taxes within such district
\n, that is to say
\n(c) taxes on the entry of goods into a market for sale therein, and tolls on
\npassengers and goods carried in ferries; and
\n(d) taxes for the maintenance of schools, dispensaries or roads.
\nPowers to
\nassess and
\ncollect land
\nrevenue and to
\nimpose taxes.
\nS<\/p>\n
For full text:-Visit the Source <\/a><\/p>\n