One Hundred and First Constitutional Amendment, 2016 - GovtVacancy.Net

One Hundred and First Constitutional Amendment, 2016

The amended provisions of the constitution through the 101st Constitutional Amendment-

 

This amendment paved the way for the introduction of the Goods and Services Tax (Goods and Services Tax) regime in the country. The Goods and Services Tax will replace indirect taxes levied by the Central and State Governments. It aims to remove the cascading effect of taxes and provide a common national market for goods and services. The proposed Central and State Goods and Services Tax will be levied on all goods, which involve the supply of goods and services, except those which are excluded from the purview of Goods and Services Tax. Accordingly, the following provisions have been made in the amendment:

 

1. Parliament and State Legislatures empowered to levy a concurrent tax to make laws for the imposition of Goods and Services Tax on every transaction of supply of goods and services or both.

 

2. It rejected the concept of 'declared goods of special importance under the Constitution.

 

3. Provided for levy of Integrated Goods and Services Tax on inter-state transactions of goods and services.

 

4. Establishment of a Goods and Services Tax Council by order of the President.

 

5. Provisions for compensation to the States for 'loss' of revenue on account of the introduction of Goods and Services Tax for a period of five years.

 

6. The Seventh Schedule substituted and omitted certain entries in the Union and State Lists.

 

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