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CMA Intermediate · Direct and Indirect Taxation · Concept of Indirect Taxes

Under the constitutional scheme after the introduction of GST, who has the 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?

Parliament alone has the power. Article 246A(2) gives Parliament exclusive power to legislate on GST for supplies in the course of inter-State trade or commerce. Concurrent power of Parliament and State Legislatures applies only to intra-State supplies, which is why the concurrent option is incorrect.

  1. AParliament aloneCorrect
  2. BThe State Legislature of the State of origin of supply
  3. CThe State Legislature of the State of destination
  4. DParliament and the concerned State Legislatures concurrently

Explanation

Article 246A(2) states that Parliament has exclusive power to make laws on GST where the supply takes place in the course of inter-State trade or commerce. The concurrent power in the option about both Parliament and State Legislatures applies to intra-State supplies, so it is wrong here.

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