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CA Intermediate · Taxation · GST in India - An Introduction

Under the constitutional scheme introduced by the Constitution (101st Amendment) Act, 2016, which of the following is correct about the power to levy GST on supplies?

Parliament has exclusive power to make laws on GST for inter-State supplies, whereas Parliament and State Legislatures have concurrent power for intra-State supplies. This division flows from Article 246A inserted by the 101st Constitution Amendment, so the other options misstate the allocation.

  1. AOnly Parliament can levy tax on all intra-State supplies
  2. BOnly State Legislatures can levy tax on inter-State supplies
  3. CParliament has exclusive power to levy GST on inter-State supplies, while Parliament and State Legislatures have concurrent power on intra-State suppliesCorrect
  4. DState Legislatures have exclusive power to levy GST on all supplies of goods and services

Explanation

Article 246A gives Parliament and State Legislatures concurrent power to make laws on GST for intra-State supplies. Parliament alone has exclusive power for inter-State trade or commerce supplies. Hence the third option is correct and the others misstate this division.

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