CONSTITUTION [101ST AMENDMENT] ACT, 2016
Constitution
(122nd Amendment) Bill, 2014 received the assent of the President of India on
8th September, 2016 and became Constitution (101st Amendment) Act, 2016, which
paved the way for introduction of GST in India.
Constitution
(101st Amendment) Act, 2016 was enacted on 8th September, 2016, with following
significant amendments:
(a) Concurrent powers on Parliament and State Legislatures to make laws governing goods and services. It means there will be dual control of State and Central authorities for all assessees.
(b) As per Article 246A, the power to levy GST has been given to the Parliament as well as to Legislature of every State.
(a) Concurrent powers on Parliament and State Legislatures to make laws governing goods and services. It means there will be dual control of State and Central authorities for all assessees.
(b) As per Article 246A, the power to levy GST has been given to the Parliament as well as to Legislature of every State.
a. CGST – enacted by Central
Government of India.
b. IGST – enacted by Central
Government of India.
c. SGST – enacted by respective
State Governments
(c)
IGST will be apportioned between Centre and the States in the manner provided
by Parliament by Law as per the recommendation of the GST Council.
(d)
GST will be levied on all supply of goods and services except alcoholic liquor
for human consumption.
(e)
The explanation to Article 269A of Constitution of India provides that the
import of goods or services will be deemed as supply of goods or services or
both in the course of inter-State trade or commerce. In case of import of goods
IGST will be levied along with the Basic Customs duty. It means IGST is levied
in replacement of CVD + Spl. CVD. In case of import of services only IGST will
be levied.
(f)
Principles for determining the place of supply and when a supply takes place in
the course of inter-state trade or commerce shall be decided by the Parliament.
(g)
The power to levy Central Excise duty on goods manufactured or produced in
India is available in respect of the following products:
a. Petroleum crude;
b. High speed diesel;
c. Motor spirit (commonly known as
petrol);
d. Natural gas;
e. Aviation turbine fuel; and
f. Tobacco and tobacco products.
However, once GST is imposed there
will be no duty on manufacture of these goods.
(h)
The power to impose tax on sale of the following products is still provided to
the State Governments:
a. Petroleum crude;
b. High speed diesel;
c. Motor spirit (commonly known as
petrol);
d. Natural gas;
e. Aviation turbine fuel; and
f. Alcoholic liquor for human
consumption.
However,
once GST Council is recommend the date from which GST is imposed on these
products (except alcoholic liquor for human consumption), and no sales tax will
be imposed on these products.
As
per definition given in article 366(12A), GST covers all the goods except
alcoholic liquor for human consumption. It means no GST can be levied on
Alcoholic liquor for human consumption. Present system of State Excise duty and
sales tax on Alcoholic liquor for human consumption will continue.
As
a result, the following bills became an Act on 12th April 2017:
Ø Central Goods and Services Tax Bill, 2017
Ø Integrated Goods and Services Tax Bill, 2017
Ø Union Territory Goods and Services Tax Bill, 2017
Ø Goods and Services Tax (Compensation to States) Bill, 2017
The
Central Government notified 1st July, 2017 as the date from which the much
awaited indirect tax reform in India, i.e Goods and Services Tax (GST) will be
implemented.
Accordingly,
Goods and Services Tax (GST) has been implemented in India w.e.f. 1st July,
2017.
1. Balachandran V - Indirect Taxes
2. ICAI - Indirect Taxes
3. ICSI - Indirect Taxes
4. ICMAI - Indirect Taxes
6. ClearTax.Com
7. Taxmann.Com
8. TaxGuru.Com
9. Quora.Com
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