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CA Intermediate · Taxation · GST in India - An Introduction

Under the Constitution (One Hundred and First Amendment) Act, 2016, which of the following correctly describes the position regarding the power to make laws on GST?

Parliament and State Legislatures have concurrent power to make laws on GST, but Parliament alone has exclusive power for supplies in the course of inter-State trade or commerce. Intra-State supplies can be taxed under both Central and State laws, which is why CGST and SGST operate together.

  1. AOnly Parliament can make laws on GST, including supplies within a State
  2. BOnly State Legislatures can make laws on GST on intra-State supplies, and Parliament has power only for imports
  3. CParliament has exclusive power to make laws on GST for inter-State trade or commerce, while Parliament and State Legislatures have concurrent power for intra-State suppliesCorrect
  4. DState Legislatures have exclusive power on inter-State supplies, and Parliament has concurrent power on imports

Explanation

Article 246A gives Parliament and State Legislatures concurrent power to make laws on GST, but Parliament has exclusive power where the supply of goods or services takes place in the course of inter-State trade or commerce. Options A and B deny the concurrent power, and option D reverses the position.

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