1.
Umamaheswari Gopal

2.
Provisions :Article 246 A
 Insertion of New article 246A: Gives power to union and state government to make the
law in respectof goods and service tax to be imposed by central /stategovernment.
 This amendment would subsume the taxes like exciseduty, service tax, central sales tax
at central level and VAT, entry tax, entertainmenttax, etc., at state level.

3.
Article no 246 A (2)
 The provision of interstatesupply of goods or servicesor both, in such circumstances
only parliament can make the law.
 In case of petroleum, crude, high speed, petrol, natural gas and aviation turbine shall
take effect from the date recommended by GST council as constituted under Article
279A.

4.
Article 248 (1)
 Parliamenthas exclusivepower to make any law in respect of any item not covered
under state list and concurrent list subjectto provision Article 246A

5.
Article 249(1)
 Parliamentunder this article, can make the law in respectof any item specified in the
state list in the nationalinterest,if the council of stateshas declared by resolutionand
supported by 2/3 rd of member present and vote.
 Parliamentcan make the GST law for the whole or any part of India subject to approval
2/3rd members of each state.

6.
Amendments of Article 250(1)
 In the event of announcement of emergency, parliament of India has power to make the
laws in respectof any item covered under state list for the whole India or part of the
India under this article.

7.
Article 268(1)
 Provisionof levy of stamp duty and exciseduty on medicinal and toilet preparationby
union government and collectionby state or by union.
 Now the duties on medicinal and toilet prepartion has been omitted and same is been
amalgamated in GST.

8.
Article 268A
 Power to government of India to levy the servicetax and collected and apportioned by
government of India and state.Now, this article has been omitted.

9.
Article 269 and insertion of New
article 269A
 This article facilitiesthe levy and collection oftax on sale of goods or consignment ofgoods in
the course of interstate trade or commerce.
 According to this article, the GST can be levied by the GOI and apportionedbetween states in
the manner as provided in the law by parliament or the recommendationof GST council.
 In additionto above, the import of goods or services or both will be treatedas supply of the
goods and servicesin the course of inter-statetrade or commerce.
 This will give power to central government to levy IGST on the import transaction.

10.
Amendment of Article 270(1)
 This articlespecifies the distributionof certain taxes between union and statesas per
clause(2)of article270.
 The interstateGST is kept out of this,as it’s regulated under 269A
 However, any other revenue of GST other than interstateGST will be distributed
between union and state according to clause(2)

11.
Article 271
 Parliamenthas exclusiveright to charge the surchargeon any tax and such surcharge
will form the part of consolidatedfund. But, parliament cannot charge any tax by way of
surcharge of GST

12.
Article 279A
 Presidentof India has power to constituteGST council,within 60 days from the date of
commencement of this act
 The council has the following members:
 Chairman : Union finance minister
 Member : Minister in charge of Finance/ taxationof each stategovernment.
 The members of the committee can decide vice-chairpersonamongst them for such
period as may decide

13.
Recommedations by council
 The council can make the recommendationon rate of GST, surcharges,exemptions,model of
GST law, place of supply rates, special rate of GST, special provision for North east states or
any other matter as decidedby the council.
 The council will decide the date when GST can be levied on petroleum crude, high speed,
petrol, natural gasand aviationturbine fuel.
 The quorum of the meeting should be 1/2nd of total members.
 Decision of council isbased on 3/4th of total weighted votes of members present and voting
 Central – 1/3 and state 2/3 of total vote cast.

14.
Article 286
 This article prevents the state from levy of interstate
GST, on sale or purchase of goods and services, import
of the goods into or export of the goods out of, the
territory of India.
 This interstate can be levied by central government
under Article 269A as mentioned earlier.

15.
Article 366
 New clause 12A to article 366, “GST means any tax on supply of good or services or
both except taxes on supply of the alcoholic liquor for human consumption. The term
service is also defined by inserting new clause26A, anything other than goods.
 The definition of service is broader as compared to the earlier one which is defined in
finance act 1994.

16.
Article 368
 This article gives power to the parliament on
amending any provision in India by introducing such
change into each house of parliament get sanctioned
by 2/3 rd of the members. 50% of resolution should by
passed by them, before presenting it to the president.

17.
Sixth schedule, 8th para
 District council has the power to levy and collect taxes on professions,trades,calling,
employment, animal, vehicle,boat, on entry of goods for maintenanceof school,
dispensariesor road.
 Now in addition to the above, the distric can levy on entertainment and amusement.

18.
Amendment in Entry No. 84, 92,
92C to Union List
 Entry 84, exciseshall be levied on tobacco and other good manufactured or produced in
India except alcoholic liquor for human consumption, opium, Indian hemp and
narcotics.
 This also includes high speed petroleum products, natural gas and tobacco and tobacco
products.
 Entry 92 and 92 C covers tax on sale or purchase of newspaper and servicetax which is
omitted.

19.
Amendments in Entry no 52, 54,55
and 62
52- power to levy the entry tax (omitted). Local bodies can’t levy and collect the entry taxes
like octrio, LBT, etc.
54- SG can collecttax on sale or purchase except for newspaper.
55- SG can’t levy the tax on ad
62- Panchayat or regional or districtcouncil can levy and collecttaxes on entertainment and
amusement under entry 62.

20.
Levy of addition 1% tax by
states
 To protect the revenue loss of manufacturing stateadditional 1% tax shall be levied by
state on sale or purchasein the course of interstate for the period of 2 years of such
extended period as allowed by the GST council
 Entire revenue happens in place where the supply of goods takes place.

21.
Compensation to states for
Revenue loss
 Parliamentmay by law and with the recommendation of GST council provides
compensationto state on account of implementationof GST.
 The period of compensationis restriced upto 5 years.

22.
Benefits of implementing GST
 Easy compliance: A comprehensive IT system would be the foundation of GST regime in India.
 All tax payers services like the registrations, returns, payments, etc., would be available to the taxpayers
online, which would make compliance easy and transparent.
 Uniformity of tax rates and structures: Indirect tax rates are common across the country.
 Removal of Cascading: Minimal cascading of taxes.
 Improved competitiveness: Reduction in transaction cost improves competitiveness
 Gain to manufacturers and exporters: Uniformity in taxation helps in reducing the compliance cost.

23.
For central and state
governments
 1. Simple and easy to administer: Multipleindirect taxation is reduced by GST
 2. Better controls on leakage: GST will result in better tax compliance due to robust IT
infrastructure.
 3. Higher revenue efficiency:Decreasethe cost of collectionof tax revenues of
government.

24.
For the consumer
 Single and transparenttax proportionateto the value of goods and services:
 GST being only one tax from manufacturer to consumer, leading to transparency of
taxes paid to the consumer.
 Relief in overall tax burden: Efficiency gains and preventionof leakages,the overall tax
burden on most commodities will come down, which benefits consumers.