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CA Intermediate · Taxation · GST in India - An Introduction

Which of the following is a feature of GST as introduced in India through the Constitution (One Hundred and First Amendment) Act, 2016?

Under Article 246A, introduced by the 101st Amendment, Parliament and State Legislatures both have concurrent power to legislate on GST, with Parliament having exclusive power over inter-State supplies. That is why CGST and SGST are levied simultaneously on intra-State supplies.

  1. ABoth Parliament and State Legislatures have concurrent power to make laws on GSTCorrect
  2. BOnly Parliament may levy GST on all supplies, and States get a share of the revenue
  3. COnly State Legislatures may levy GST on intra-State supplies
  4. DParliament alone may levy IGST and States alone may levy CGST

Explanation

Article 246A gives Parliament and State Legislatures concurrent power to make laws on goods and services tax, while Parliament has exclusive power for inter-State supplies. Hence the Centre levies CGST and the States levy SGST on intra-State supplies simultaneously. The options claiming exclusive power over all supplies by one level, or CGST only by the Centre without State power, misstate this.

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