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Concept of Indirect Taxes at a Glance - Coggle Diagram
Concept of Indirect Taxes at a Glance
CONSTITUTION AMENDMENT ACT, 2016
Article 246A
• Article 246A was inserted by Constitution (101st) Amendment Act, 2016, especially for the Goods & Services Tax.
Amendment to Article 248
• Article 248 contains the Residuary Powers of legislation. Article 248(1) reads
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. After amendment Article 249(1) reads
Amendment to Article 250
• Article 250 deals with the power of Parliament to legislate with respect to any matter in the State List if a Proclamation of emergency is in operation. After amendment Article 250(1) reads
Amendment to Article 268
Article 268 deals with duties levied by the Union but collected and appropriated by the states. The amendment proposes deletion of some words. After amendment, Article 268 reads
Omission of Article 268A
Amendment to Article 269
Article 269 deals with taxes levied and collected by the Union but assigned to the states.
The amended Article 269 (1) reads
Article 269A
Article 269A(1) provides that goods and services tax on supplies in the course of inter-State trade
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
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),
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
Amendment to Article 270
Article 270 deals with distribution of revenues between the Union and states. After amendment Article 270 (1)
Amendment to Article 271
Article 271 - Notwithstanding anything in Articles 269 and 270, Parliament may at any time increase any of the duties or taxes
GOODS AND SERVICES TAX COUNCIL
Section 12 of the Act proposed to insert a new Article 279A after Article 279 which deals with Goods and Services Tax Council.
Article 279A
The President shall, within sixty days from the date of commencement of the Constitution
Amendment of Article 286
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
Amendment of Article 366
Article 366 defines some words. Clause (12A) is proposed to be inserted after clause (12). The newly inserted clause (12A) defines the term ‘goods and services tax
Clauses (26A) and (26B) have been inserted after clause (26). Clause (26A) defines the term ‘services
Clause (26B) defines the term ‘State’, with reference to articles 246A, 268, 269, 269A and 279A including a Union territory with Legislature.
Amendment of Article 368
Article 368 deals with the power of Parliament to amend Constitution and procedure there for
Amendment of Sixth schedule
Para 8 of the schedule deals with powers of the Regional Councils to assess and collect land revenue and impose taxes. Clause (e) after clause (3) (d) has been inserted
Amendment of Seventh Schedule
COMPENSATION TO STATES FOR DEFICIT IN TAX COLLECTIONS
Under this Act some additional tax is collected as GST compensation cess
POWER TO REMOVE DIFFICULTIES
Section 20 gives powers to the President to remove difficulties. If any difficulty arises in giving effect to the provisions of the Constitution as amended by this Act
Article 246A Inserted
Overrides Article 246
States can levy tax on goods & services
only parliament can levy tax on interstate supplies
Article 269A Inserted
Parliament to levy IGST on interstate suppy
Import / export is a deemed interstate suppy
IGST distributed between centre & state /UT
Parliament to determine place & time of suppy
Article 279A Inserted
A federal body constituted by president on 15th September,2016
Union FM, Union minister of state + state FMs
Union - 1/3 weightage
States- 2/3 weightage
Decision by 3/4th at least
All powerful Body to re- commend on numerous issues