Taxation · GST in India - An Introduction

Constitutional Framework of GST: 101st Amendment, Articles 246A, 269A and 279A

Updated 5 October 2026 · Fact-checked

The Constitution (101st Amendment) Act, 2016 gave the Centre and States concurrent power to levy GST. Article 246A grants that power, Article 269A governs inter-State IGST, and Article 279A creates the GST Council, which recommends rates, exemptions and law changes. Solve questions by naming the Article, stating its rule, and applying it to the facts.

Understand Constitutional Framework of GST

Before GST, the Constitution kept taxing powers apart. The Centre taxed manufacture of goods (excise) and services. States taxed sale of goods (VAT) and entry of goods. This split made a single tax on goods and services impossible, because neither government could tax the whole supply chain.

The Constitution (One Hundred and First Amendment) Act, 2016 fixed this. It inserted new Articles and amended others so that both the Centre and the States can tax the same supply, each under its own law. The Centre levies CGST, the State or Union territory levies SGST or UTGST, and the Centre levies IGST on inter-State supplies.

The key Articles are easy to remember by their job. Article 246A gives the power to make GST laws. Article 269A deals with GST on inter-State supplies: the Centre levies and collects it, and it is then shared between the Centre and the States. Article 279A sets up the GST Council. Article 366(12A) defines GST and Article 366(26A) defines services. Article 366(12A) says GST means any tax on supply of goods or services or both, except alcoholic liquor for human consumption.

The GST Council is the joint forum of the Centre and the States. Its Chairperson is the Union Finance Minister. Other members are the Union Minister of State in charge of Revenue or Finance, and the Minister in charge of Finance or Taxation (or any other Minister nominated) of each State. The members choose one of the State Ministers as Vice-Chairperson (Article 279A(3)). The Council recommends on matters such as tax rates, exemptions, threshold limits, model GST laws and special provisions for some States.

Some items sit outside normal GST. Alcoholic liquor for human consumption is outside GST, and States keep their power to tax it. Petroleum crude, high speed diesel, motor spirit (petrol), natural gas and aviation turbine fuel fall within the constitutional definition of GST under Article 366(12A), but GST is not yet levied on these five products. It applies only from a date the Council recommends. Until then, they remain under the old taxes.

Keep tobacco products separate from the points above. Tobacco products are subject to GST. The Centre additionally levies central excise duty on them as a separate levy. It is not a constitutional exclusion from GST.

Key rules to remember

101st Constitutional Amendment: Constitution (101st Amendment) Act, 2016; Introduced GST. Received Presidential assent on 8 September 2016.
Article 246A: Article 246A(1): Parliament and the State Legislatures have power to make laws on GST, notwithstanding Articles 246 and 254. Article 246A(2): Parliament has exclusive power to make laws on GST where the supply of goods or services takes place in the course of inter-State trade or commerce.; Special provision for GST. Clause (1) overrides the normal division of powers under Articles 246 and 254. Clause (2) is the exception: for inter-State supply, only Parliament can make the law.
Article 269A: Inter-State supply, including import: GST levied and collected by the Centre, then apportioned between the Centre and the States; Apportionment is on the Council's recommendations. It also covers import of goods or services in the course of trade or commerce. Amounts apportioned to a State do not form part of the Consolidated Fund of India (Article 269A(2)).
Article 279A: Under Article 279A(1), as brought into force by notification of 12 September 2016, the President constitutes the GST Council.; Joint forum of the Centre and the States.
Council composition: Chairperson: Union Finance Minister. Members: Union MoS (Revenue/Finance) and State Ministers in charge of Finance or Taxation; The members of the Council choose one of the State Ministers as Vice-Chairperson, as per Article 279A(3).
Voting in the Council: Decision needs at least three-fourths of the weighted votes of members present and voting. Centre's weight = one-third. All States together = two-thirds.; Quorum is one-half of the total number of members, as per Article 279A(7). The Centre's vote has a weightage of one-third of the total votes cast, and the votes of all the States combined have two-thirds. The three-fourths majority of weighted votes of members present and voting also comes from Article 279A(9).
Article 366(12A): GST = any tax on supply of goods or services or both, except alcoholic liquor for human consumption; Defines GST in the Constitution.
Article 366(26A): Services means anything other than goods; Defines services very widely.
Article 269A(5): Parliament, by law on the Council's recommendation, formulates the principles for determining the place of supply and when a supply is in the course of inter-State trade or commerce; Place of supply principles and the test for inter-State trade are set by Parliament.

How to solve Constitutional Framework of GST questions

Use this method for any question on the constitutional framework, whether it is a short MCQ or a descriptive answer.

1Read the question and mark what is asked: an Article, the amendment, the Council, or the division of taxing powers.
2Name the exact provision. Write the Article number and the Act, for example Article 246A, Constitution (101st Amendment) Act, 2016.
3State the rule in one plain sentence, including its condition or exception, such as inter-State supply being only for Parliament.
4If the question is about the Council, give composition, voting rule and its power to recommend separately.
5If the question gives a fact pattern, identify who levies the tax: Centre (CGST, IGST) or State/UT (SGST, UTGST).
6Check for special items: alcoholic liquor for human consumption and the five petroleum products.
7Write a one-line conclusion that answers the question directly.

Quickest way: Article-to-job matching for MCQs and short answers

When to use it: Use it when you have a few minutes and the question tests recall of Articles, voting or Council composition.

Link each number to one job: 246A = power to make GST laws; 269A = inter-State levy and sharing; 279A = GST Council; 366(12A) = definition of GST.
For voting, recall the weights: Centre one-third, States two-thirds, decision by three-fourths of votes present and voting.
In MCQs, eliminate options that give the Chairperson as anyone other than the Union Finance Minister.
Eliminate options that say alcoholic liquor for human consumption is under GST.
In written answers, use a short format: Provision, Rule, Application, Conclusion. This earns step marks even if one detail slips.
Keep any listing neat with bullet points, as examiners mark each correct point.

Common mistakes in Constitutional Framework of GST

Saying the Centre alone levies GST on all supplies.
Students remember IGST as a Central tax and forget that CGST and SGST are levied by different governments.
Fix: Remember that Article 246A gives concurrent power. The Centre levies CGST and IGST. The State or UT levies SGST or UTGST.
Mixing up Article 269A and Article 279A.
The numbers look alike.
Fix: Use the job-based hook: 269A = inter-State tax levy and sharing; 279A = Council.
Writing that all voting needs a simple majority.
Students assume ordinary meeting rules.
Fix: Write that decisions need at least three-fourths of the weighted votes of members present and voting, with the Centre at one-third and States together at two-thirds.
Stating that alcohol and petroleum are both fully outside GST.
Both are listed as special in one line, so they get treated alike.
Fix: Alcoholic liquor for human consumption is outside GST. The five petroleum products fall within the constitutional definition of GST, but GST is not yet levied on them and applies only from a date the Council recommends.
Saying the Council's recommendations bind everyone as law.
The Council seems powerful, so students treat it as a lawmaker.
Fix: Write that the Council makes recommendations. Laws are made by Parliament and State Legislatures. Say it recommends on rates, exemptions, thresholds and model laws.

Worked examples

Example 1

Explain the role of Article 246A and Article 269A in the GST framework. Who can make laws on inter-State supply?

Show the solution

Provision: Article 246A was inserted by the Constitution (101st Amendment) Act, 2016. Under Article 246A(1), Parliament and the State Legislatures have concurrent power to make laws on GST, notwithstanding Articles 246 and 254.
Exception: under Article 246A(2), Parliament has exclusive power to make laws on GST where the supply of goods or services takes place in the course of inter-State trade or commerce.
Article 269A: GST on inter-State supply is levied and collected by the Government of India. It is then apportioned between the Centre and the States on the GST Council's recommendations.
Conclusion: the Centre makes laws for inter-State supply and levies IGST. For intra-State supply, both levels make their own laws.

Answer: Article 246A(1) gives concurrent power to make GST laws, notwithstanding Articles 246 and 254. Under Article 246A(2), only Parliament can legislate on inter-State supply. Under Article 269A, the Centre levies and collects GST on inter-State supply and shares it with the States as recommended by the GST Council.

Example 2

The GST Council has a meeting where the Centre and States must pass a decision. Explain who chairs the Council, and what voting majority is needed. Can the Centre alone pass a decision?

Show the solution

Provision: Article 279A deals with the GST Council.
Chairperson: the Union Finance Minister chairs the Council.
Voting weight: the Centre has one-third of the total votes. All States together have two-thirds.
Majority: a decision needs at least three-fourths of the weighted votes of members present and voting.
Application: the Centre alone has only one-third, which is less than three-fourths, so it cannot reach the majority without State votes.
Conclusion: the Centre cannot pass a decision alone. The States alone also cannot pass a decision, because together they hold two-thirds, which is less than three-fourths. The Centre can block a decision, since its one-third is more than the one-fourth needed to defeat a three-fourths majority.

Answer: The Union Finance Minister chairs the Council. Decisions need three-fourths of the weighted votes of members present and voting, with the Centre at one-third and States at two-thirds. The Centre alone cannot reach three-fourths. The States alone cannot pass a decision either, because their two-thirds is less than three-fourths. The Centre can block a decision, since one-third exceeds the one-fourth needed to defeat a three-fourths majority.

Exam tips

Learn the Article numbers as a short table in your head: 246A, 269A, 279A, 366(12A), 366(26A). MCQs often test a number against its job.
For descriptive answers on the Council, give composition, voting and functions as separate bullets. Each point earns marks.
Always add the exceptions: alcoholic liquor for human consumption, and the five petroleum products on which GST applies from a date the Council recommends.
Do not write the Income-tax Act in a GST answer. Use only the Constitution, the CGST Act, 2017 and the IGST Act, 2017.
Revise the voting rule with the weights. Numerical-style MCQs on the weighted majority are easy marks if you remember one-third, two-thirds and three-fourths.

Practice questions from GST in India - An Introduction

Constitutional Framework of GST in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Constitutional Framework of GST: frequently asked questions

What did the 101st Constitutional Amendment Act, 2016 do?

It introduced GST by changing the Constitution. It gave the Centre and States concurrent power to tax supplies of goods and services, created the GST Council, and defined GST and services. Without it, the two levels of government could not tax the same supply.

What is the difference between Article 246A and Article 269A?

Article 246A is the power to make laws on GST, shared by Parliament and State Legislatures notwithstanding Articles 246 and 254. Article 269A deals with inter-State supply: the Centre levies and collects the tax, then it is shared with States. Under Article 246A(2), only Parliament can make the law for inter-State supply.

Who are the members of the GST Council and how does it vote?

The Chairperson is the Union Finance Minister. Members are the Union Minister of State in charge of Revenue or Finance and the Ministers in charge of Finance or Taxation of each State. Decisions need three-fourths of weighted votes of members present and voting, with the Centre at one-third and States at two-thirds.

How are taxing powers divided between Centre and State under GST?

Both levels can tax the same supply. For intra-State supply, the Centre levies CGST and the State or Union territory levies SGST or UTGST. For inter-State supply, the Centre levies IGST and shares the proceeds with the States.