Provisions for amendments of gst

Details on the different articles mentioned for the powers vested with central government, state government and parliament.

1. Provisions for amendments of GST Umamaheswari Gopal

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

3. Article no 246 A (2) The provision of interstate supply of goods or services or 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) Parliament has exclusive power to make any law in respect of any item not covered under state list and concurrent list subject to provision Article 246A

5. Article 249(1) Parliament under this article, can make the law in respect of any item specified in the state list in the national interest, if the council of states has declared by resolution and supported by 2/3 rd of member present and vote. Parliament can make the GST law for the whole or any part of India subject to approval 2/3 rd 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 respect of any item covered under state list for the whole India or part of the India under this article.

7. Article 268(1) Provision of levy of stamp duty and excise duty on medicinal and toilet preparation by union government and collection by 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 service tax 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 facilities the levy and collection of tax on sale of goods or consignment of goods in the course of interstate trade or commerce. According to this article, the GST can be levied by the GOI and apportioned between states in the manner as provided in the law by parliament or the recommendation of GST council. In addition to above, the import of goods or services or both will be treated as supply of the goods and services in the course of inter-state trade or commerce. This will give power to central government to levy IGST on the import transaction.

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

11. Article 271 Parliament has exclusive right to charge the surcharge on any tax and such surcharge will form the part of consolidated fund. But, parliament cannot charge any tax by way of surcharge of GST

12. Article 279A President of India has power to constitute GST 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/ taxation of each state government. The members of the committee can decide vice-chairperson amongst them for such period as may decide

13. Recommedations by council The council can make the recommendation on 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 decided by the council. The council will decide the date when GST can be levied on petroleum crude, high speed, petrol, natural gas and aviation turbine fuel. The quorum of the meeting should be 1/2 nd of total members. Decision of council is based on 3/4 th 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 clause 26A, 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, 8 th para District council has the power to levy and collect taxes on professions, trades, calling, employment, animal, vehicle, boat, on entry of goods for maintenance of school, dispensaries or 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, excise shall 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 service tax 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 collect tax on sale or purchase except for newspaper. 55- SG can’t levy the tax on ad 62- Panchayat or regional or district council can levy and collect taxes on entertainment and amusement under entry 62.

20. Levy of addition 1% tax by states To protect the revenue loss of manufacturing state additional 1% tax shall be levied by state on sale or purchase in 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 Parliament may by law and with the recommendation of GST council provides compensation to state on account of implementation of GST. The period of compensation is 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: Multiple indirect 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: Decrease the cost of collection of tax revenues of government.

24. For the consumer Single and transparent tax proportionate to 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 prevention of leakages, the overall tax burden on most commodities will come down, which benefits consumers.